ECON 010 Chapter Notes - Chapter 4: Statistical Inference, Sample Space, 12012
Document Summary
Definition: probability is a numerical measure of the likelihood that an event will occur. The values of probability are assigned on a scale between 0 and 1. A probability near zero indicates that an event is unlikely to occur, while a probability near 1 indicates that an event is most likely to occur. Definition: an experiment is a process that generates well defined outcomes. Definition: the sample space for an experiment is the set of all possible outcomes. Each outcome is in the sample space is known as a sample point. For example, an experiment such as flipping a coin has two well defined outcomes: heads or tails which constitute the sample space. Another experiment could be rolling a die where there the sample space is 1,2, 3, 4, 5, or 6: counting rules, combinations, and permutations. A key step in assigning probabilities is to first be able to identify and count the number of possible outcomes of an experiment.
