ECON 2200 Chapter Notes - Chapter 4: Empirical Probability, Collectively Exhaustive Events, Statistical Inference
25 Jan 2017
School
Department
Course
Professor
Document Summary
Chapter 4 a survey of probability concepts. Statistical inference computing the chance that something will occur in the future. Deals with conclusions about a population based on a sample taken from that population. Important that all the known risks involved be scientifically evaluated. Probability a measure of the likelihood that an event in the future will happen. It can only assume a value between 0 and: a value near zero means the event is not likely to happen, a value near one means it is likely to happen. Experiment a process that leads to the occurrence of one and only one of several possible observations. Outcome a particular result of an experiment. Event a collection of one or more outcomes of an experiment. Two approaches to assigning a probability to an event: Two types of objective probability: classical probability, empirical probability. Classical probability based on the assumption that the outcomes of an experiment are equally likely.
