QMS 102 Chapter Notes - Chapter 5: Empirical Probability, Almost Surely, A Priori And A Posteriori

• School: Ryerson University
• Department: Quantitative Methods
• Course: QMS 102
• Professor: Gunawardena Egodawatte

Document Summary

Probability is the numeric value representing the chance, likelihood, or possibility that a particular event will occur (price of a stock increasing, a rainy day, a defected product) In all these instances, the probability involved is a proportion or faction whose value ranges between 0-1. An event that has no chance of occurring ( the impossible event has a. An event that is sure to occur (a certain event) has a probability of 1. There are 3 types of probability proability of 0: a priori, empirical, subjective. In a priori probability, the probability of an occurrence is based on prior knowledge of the process involved. o x t probability of occurrence x=number of ways whichthe event occurs o: t= total number of possible outcomes. A deck of cards has 26 red cards and 26 black cards. The probability of selecting a black card is 26/52= 0. 50 because x=26 black cards and t = 52.