LONG-RUN PROPORTION
gives basis for definition of probability
gets closer/closer to certain number
get rid of uncertainty/randomness
SHORT RUN PROPORTION
highly random/variable
** as # of trials increases = proportion of times # becomes predictable/less random
Jacob Bernoulli proves # of trials increasesâŚ.proportion of occurances approaches certain number in LONGRUN
he assumes outcome of any trial does NOT depend on outcome of other trials
TYPES OF PROBABILITY
subjective
rely on sub. info bc you do/can NOT have any
probability of outcome is personal (ur degree of belief that outcome occurs based on available info)
objective
use data from long-run trials
unconditional___
SAMPLE SPACE
list of individual outcomes of random phenomenon
btwn 0â1
sum = 1
Probability of event is sum of prob of indiv. outcomes from sample space making up event
P(A) = # of outcomes of A / # of outcome in sample space
For event A compliment (does NOT occur)
P (A^c) = 1 - P(A)
UNION is 2 events (A or B or both)
P (A or B) = P(A) + P(B) - P(A&B)
INDEPENDENT /intersection of 2 events
one doesnât affect the other
P(A&B) = P(A) * P(B)
DISJOINT/MUTUALLY EXLUSIVE
when A and B have no common elements
one event affects the other
P(A&B) = 0