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Important Probability formulas and Rules of Probability

Important Probability formulas and rules of Probability<br><br>Probability in non-mathematical phrases resembles u2018Chancesu2019. If the chance is on the better side, then the probabilities of the occasion are better. Likewise, if the chance of an occasion shifts to the decrease side, then the probabilities of that occasion to arise is less.<br><br>The probability concept is carried out in day-to-day life. It is carried out in an easy way each day in addition to complex commercial calculations. It is utilized in hazard evaluation and modeling. Also, the coverage enterprise and markets use actuarial technologica

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Important Probability formulas and Rules of Probability

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  1. www.cheggindia.com Important Probability formulas and Rules of Probability

  2. Probability is a branch of statistical mathematics. It deals with the likeliness of an event to occur in numerical descriptions. The probability of an event lies between 0 and 1. If the probability indicates 0, that means the chances of the event is not possible. While, 1 denotes the probability of the event to occur is maximum. There are different probability formulas and rules which we will discuss in the following paragraphs. Introduction Probability in non-mathematical terms resemble ‘Chances’. If the probability is on the higher side, then the chances of the event is higher. Likewise, if the probability of an event shifts to the lower side, then the chances of that event to occur is less.

  3. Some common terms Probability of an event is denoted by ‘P’. P = number of favorable outcomes/ total number of outcomes For example: When is coin is tossing, then what is the probability of getting a head? Solution: Number of favorable outcomes (getting a head) = 1 Total number of outcomes = 2 We know that, the probability formulas say P (E) = n (E) / n(S) Probability of getting a head = ½ = 0.5 Or 50%

  4. Random experiment It is not possible to predict an outcome in advance. Also, It has more than one outcome. Equally likely It means that each outcome of an experiment occurs with equal probability. Probability function It helps to obtain probability of each and every outcome. Outcome It is a possible result of an experiment or trial. In addition, each possible outcome is unique. Equally likely It means that each outcome of an experiment occurs with equal probability. Sample space (S) A set of possible outcomes is called sample space. Probability function It helps to obtain probability of each and every outcome.

  5. Types of Probability Classical Probability It is simple form of probability. It is an approach to identify and assume that any random process has a set of outcomes. Then, the probability formulas of an event say P (E) = n (E) / n(S) Here, P (A) indicating the probability of event A. While n (E) indicating number of possible outcomes. And n (S) means total number of possible outcomes. Relative Frequency Definition It is an estimate for probability events. the formula for relative frequency is given below Relative Frequency = frequency of an event/total number of frequencies

  6. What are the 5 rules of probability? RULE 1 RULE 2 RULE 3 The first rule of probability reflects to very basics of the topic. It informs us that the likelihood of an event lie between 0 and 1. In that case, 0 means that the chances of the event to occur is not possible. While 1 denotes that chances of the event to maximum. The probabilities possible outcomes is 1. For instance, in rolling a single dice, each outcome in the sample space probability of ⅙ , and the total of all outcomes equal to 1. sum of the the If an event A cannot occur i.e., the event contains no members in the sample space, it’s probability is 0. For instance, when a single dice is rolling, what can be the probability of getting a number greater than 6. Since all the sample spaces are 1,2,3,4,5 and 6. As it is seen that all the space is less than 6. of all has a occur is

  7. RULE 4 RULE 5 If an event A is certain, then it’s probability is 1. For instance, when a a single dice is rolling, then what shall be the probability of getting a number less than 8. Since all the outcomes are 1,2,3,4,5 and 6. As it is seen that all the outcomes are less than 8. So, the probability is 1. P (number less than 8) = 6/6 = 1 or 100% Then event of number getting less than 8 is certain. The Complement Rule states that the sum of the probabilities of an event and its complement must equal 1. P(A)+P(A′)=1 So, P (A’) = 1 – P (A)

  8. Conclusion Many uncertainty and probability in their business decisions. Probability formulas and theory highly assist businesses in optimizing their policies and making safe decisions. One practical yet frequent use for probability related concepts is in the analysis in business and to predict future levels of sales. businesses apply the understanding of

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  10. Thank You.

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