MGMT 1050 Chapter Notes - Chapter 6 - 9: Mutual Exclusivity, Binomial Distribution, Posterior Probability
10 Dec 2016
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Random experiment: an action or process that leads to one of several possible outcomes. Assigning probabilities: produce a list of outcomes, must be exhaustive (all outcomes included, must be mutually exclusive (no two outcomes can occur at the same time) Sample space: a list of all possible outcomes of a random experiment (exhaustive and mutually exclusive) S = {&, (, : probability of any outcome must lie between zero and one, oi is outcome i, sum of all the probability outcomes in a sample space must be one. Classical approach: probability associated with games of chance. 50% heads or tails, 1/6th of getting a number of a die. Relative frequency approach: probability as the long-run (sample) relative frequency with which an outcome occurs. Subjective approach: probability as the degree of belief that we hold in the occurrence of an event. Analyze a number of factors and assign a probability through judgement. Simple event: an individual outcome of a sample space.
