MGMT 1050 Chapter Notes - Chapter 6: Mutual Exclusivity, Sample Space, Conditional Probability
Document Summary
Random experiment: an action or process that leads to one of several possible outcomes. First step in assigning probabilities is to produce a list of outcomes: exhaustive: all possible outcomes must be included, mutually exclusive: no two outcomes can occur at the same time. Sample space of a random experiment: list of all possible outcomes of the experiment (must be exhaustive and mutually exclusive: ex. Requirements of probability: probability of any outcome must lie between 0 and 1, the sum of the probabilities of all the outcomes in a sample space must be 1. Relative frequency approach: probability as the long-run frequency with which an outcome occurs: ex. 200 people received an a in stats, out of 1,000 students, the relative frequency of a"s is 20: only an estimate though, the larger the sample and data, the better the estimate. Subjective approach: probability as the degree of belief that we hold in the occurrence of an event.
