Probability summarized Notes-Kenyatta University ` Kenyatta University Course : Unit Tittle : Bachelor of Commerce Probability 1 Probability summarized Notes-Kenyatta University PROBABILITY Definition. It’s a value between zero and one inclusive, describing the relative possibility (chance or likelihood) that an event will occur. Terms used in probability ➢ Experiment: It’s a process or course of action that results in one of a number of possible outcomes. The outcome that occurs cannot be predicted with certainty e.g. tossing a coin. ➢ Outcome: It’s a particular result of an experiment e.g. getting a head ➢ Event: it’s a collection of one or more outcomes of an experiment. ➢ Sample space: It’s a list of all possible outcomes of the experiment. The outcomes listed must be mutually exclusive and exhaustive. ➢ Mutually exclusive events: They are events which cannot occur at the same time i.e. when one event occurs, none of the other events can occur at the same time. ➢ Independent events: -two events are independent if the occurrence of one event does not alter the probability of the other event. ➢ Collectively exhaustive: At least one of the events must occur when an experiment is conducted. Approaches to Assigning Probability There are three approaches to probability (a) Classical probability: It’s based on the assumption that the outcomes of an experiment are equally likely. Number of favourable outcomes Probability of an event = Total nu ...
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