BUEC 232- Midterm Exam Guide - Comprehensive Notes for the exam ( 25 pages long!)

• School: Simon Fraser University
• Department: Business Economics
• Course: BUEC 232
• Professor: Andrew Flostrand

Document Summary

Insurance industry: gaming industry, government, manufacturing/aerospace industries, randomness = individual outcomes are uncertain, but there is a regular distribution of outcome in a large # of repetitions. If the probability of an outcome occurring is 1, the event is certain to occur: smallest possible probability is 0, where the event is certain not to occur. Lo3: experiment = process that produces outcomes, event = outcome of an experiment, experiment defines the possibilities of the event, devoted by uppercase letters. Intersection = contains the elements common to both sets & is denoted by the e(cid:454)p(cid:396)essio(cid:374) x y: thus, the i(cid:374)te(cid:396)se(cid:272)tio(cid:374) s(cid:455)(cid:373)(cid:271)ol is ofte(cid:374) (cid:396)ead as (cid:862)a(cid:374)d(cid:863) Intersection of x, y is referred to as x and y. X = {1, 2, 3} and y = {3, 4, 5, 6} Independent events x and y: p(x|y) = p(x) and p(y|x) = p(y: p(x|y) denotes the probability of x occurring given that y has occurred.