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random phenomenon
chance behavior with a regular distribution of outcomes over a LARGE number of trials
probability
P(E) = # of ways desired outcomes occur/ # of total possible outcomes
sample space
all possible outcomes of a random phenomenon
event
specific outcome(s) from the sample space that stratify the desired outcome
simulation
model that mathematically reflects the situation of interest
simulation step 1
state - state question of interest
simulation step 2
plan - describe how to model the situation (1 repetition)
state assumptions
assign digits
describe process
simulation step 3
do - carry out many repetitions and record
simulation step 4
conclude - use results to answer “question of interest”
complement
all outcomes not part of an event, but in the sample space
disjoint (mutually exclusive)
events that have NO COMMON OUTCOMES but are in the sample space
P(A and B) = 0
If disjoint, this is true P(A and B) = P(A) + P(B)
independent
knowing an outcome of an event does not impact thee probability of another event
P(A) = P(A|B)
if ind basic mult. rule holds: P(A and B) = P(A) * P(B)
value of probability
0 <= P(A) <= 1
total probability
sum of all probabilities of all possible outcomes for a sample space = 1
complement rule
P ( A^c ) = 1 − P ( A )
addition rule
only for disjoint events
P(A or B) = P(A) + P(B)
multiplication rule
only for independent events
P(A and B) = P(A) * P(B)
conditional
P(A|B) = A given B
general addition rule
use when not disjoint
P(A or B) = P(A) + P (B) - P(A and B)
general multiplication rule
use when not independent
P(A and B) = P(A) * P(B|A)
conditional probability rule
P(B|A) = P(A and B)/P(A)