STAT 100 Chapter 19: Chapter 19 STAT.docx

• School: Simon Fraser University
• Department: Statistics
• Course: STAT 100
• Professor: Derek Bingham

Document Summary

The big advantage of probability models is that they allow us to calculate the probabilities of complicated events starting from an assignment of probabilities. Technology rides to the rescue: once we have a probability model, we can use a computer to simulate many repetitions. Simulations of probabilities use a probability model. Using random digits from a table or from computer software to imitate chance behavior is called a simulation. Because it is how scientists and engineers really do find probabilities in complex situations. Simulation is an effective tool for finding probabilities of complex events once we have a trustworthy probability model. We can use random digits to simulate many repetitions quickly. The proportion of repetitions on which an event occurs will eventually be close to its probability, so simulation can give good estimates of probabilities. Two random phenomena are independent if knowing the outcome of one does not change the probabilities for outcomes of the other.