The document provides an overview of probability, its historical context, and its significance in statistics. It discusses various approaches to assigning probabilities, including A Priori, A Posteriori, and Subjective methods, along with examples illustrating these concepts. Additionally, it defines probability mathematically and presents real-life applications, such as predicting outcomes in gambling and assessing risks in health and finance.
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The document provides an overview of probability, its historical context, and its significance in statistics. It discusses various approaches to assigning probabilities, including A Priori, A Posteriori, and Subjective methods, along with examples illustrating these concepts. Additionally, it defines probability mathematically and presents real-life applications, such as predicting outcomes in gambling and assessing risks in health and finance.
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PROBABILITY
STATISTICS By: Liza D. Buitizon INTRODUCTION Formal study of chance.
It originated from the analysis of gambling games (or
games of chance) – predicting the likelihood/chance of an outcome.
It is important in the study of statistics as it provides a
bridge between descriptive and inferential statistics. REAL LIFE APPLICATIONS Determining the probability of winning in lotto. Determining the chance of dengue infection in a community with reported cases. Determining the chance of the price of a particular stock increasing in a particular trading day Determining the strength and path of typhoons APPROACHES IN ASSIGNING PROBABILITIES TO EVENTS In general, a probability is a number attached to an event which indicates the chance it will occur. The larger the number, the more likely it is to occur.
Approaches: A Priori A Posteriori Subjective A PRIORI APPROACH Theoretical, axiomatic, classical
Requires the construction of a model that will be used
in the computation or assignment of probabilities with underlying assumptions. A PRIORI APPROACH MODEL: Sample Space ASSUMPTION: Each outcome in S has the same chance of occurring (equally likely outcomes) Under this assumption, the probability of an event E occurring is Number of outcomes/elements in E P( E ) Number of outcomes/elements in S Involves counting. A PRIORI APPROACH Example: Recall the experiment of tossing 3 fair coins Since the coins are fair, outcomes are equally likely.
P(E) = 3/8 A POSTERIORI APPROACH Also called the relative frequency approach
The probability of an event occurring is computed based
on the relative frequency of that event happening after the random experiment is conducted a large number of times. A POSTERIORI APPROACH Example: Random exp’t. – toss three coins. Suppose, the experiment is conducted 100 times and the result are shown in the following table:
OUTCOME HHH HHT HTH THH HTT THT TTH TTT
FREQUENCY 11 9 13 15 12 18 17 5
Let E be the event of getting 2 heads:
E {HHT , HTH , THH } 9 13 15 37 P( E ) 0.37 100 100 A POSTERIORI APPROACH f ( A) lim P ( A) n n The A posteriori probability is not always equal to the A priori probability. However, the two probabilities becomes closer as the number of trials is increases. SUBJECTIVE APPROACH The assignment of a probability depends on one’s personal assessment. PROBABILITY DEFINITION Probability is the chance that something will happen. Probabilities are expressed mathematically as fractions (1/6, 1/3, 8/9) or as decimals (.25, .5, .78) between 0 and 1. Assigning zero means that something can never happen; and a probability of 1 indicates that something will surely happen. 0 PA 1 for any event A P 1 where is the sample space P 0 EXAMPLES:
If a card is drawn from an ordinary deck, find the
probability that it is a heart.
A bag contains 6 red balls, 5 yellow balls and 3 green
balls. A ball is drawn at random. What is the probability that the ball is: (a) green, (b) not yellow?
The letters of the word ENGINEERING are written on
slips of paper, and are placed in a box. A slip of paper is chosen at random. What is the probability that: (a) the letter is vowel, (b) the letter is a consonant. EXAMPLE: A pilot plant has produced metallurgical batches which are summarized as follows: Low Strength High Strength Low in 2 27 impurities High in 12 4 impurities If these results are representative of full-scale production, find estimated probabilities that a production batch will be: i) low in impurities ii) high strength iii) both high in impurities and high strength iv) both high in impurities and low strength PROBABILITY OF A COMPLEMENT This rule states that the probability that an event A will not occur is equal to 1 minus the probability that it will occur.