Probability - Wikipedia
Probability - Wikipedia
Interpretations
When dealing with experiments that are
random and well-defined in a purely
theoretical setting (like tossing a fair coin),
probabilities can be numerically described
by the number of desired outcomes,
divided by the total number of all
outcomes. For example, tossing a fair coin
twice will yield "head-head", "head-tail",
"tail-head", and "tail-tail" outcomes. The
probability of getting an outcome of "head-
head" is 1 out of 4 outcomes, or, in
numerical terms, 1/4, 0.25 or 25%.
However, when it comes to practical
application, there are two major competing
categories of probability interpretations,
whose adherents hold different views
about the fundamental nature of
probability:
History
The scientific study of probability is a
modern development of mathematics.
Gambling shows that there has been an
interest in quantifying the ideas of
probability for millennia, but exact
mathematical descriptions arose much
later. There are reasons for the slow
development of the mathematics of
probability. Whereas games of chance
provided the impetus for the mathematical
study of probability, fundamental issues
are still obscured by the superstitions of
gamblers.[10]
Theory
Like other theories, the theory of
probability is a representation of its
concepts in formal terms—that is, in terms
that can be considered separately from
their meaning. These formal terms are
manipulated by the rules of mathematics
and logic, and any results are interpreted
or translated back into the problem
domain.
Applications
Probability theory is applied in everyday
life in risk assessment and modeling. The
insurance industry and markets use
actuarial science to determine pricing and
make trading decisions. Governments
apply probabilistic methods in
environmental regulation, entitlement
analysis (reliability theory of aging and
longevity), and financial regulation.
Mathematical treatment
Independent events …
Conditional probability …
Inverse probability …
Summary of probabilities …
Summary of probabilities
Event Probability
not A
A or B
A and B
A given B
See also
Chance (disambiguation)
Class membership probabilities
Contingency
Equiprobability
Heuristics in judgment and decision-
making
Probability theory
Randomness
Statistics
Estimators
Estimation Theory
Probability density function
Pairwise independence
In Law
Balance of probabilities
Notes
1. Strictly speaking, a probability of 0
indicates that an event almost never
takes place, whereas a probability of 1
indicates than an event almost
certainly takes place. This is an
important distinction when the sample
space is infinite. For example, for the
continuous uniform distribution on the
real interval [5, 10], there are an infinite
number of possible outcomes, and the
probability of any given outcome being
observed — for instance, exactly 7 — is
0. This means that when we make an
observation, it will almost surely not
be exactly 7. However, it does not
mean that exactly 7 is impossible.
Ultimately some specific outcome
(with probability 0) will be observed,
and one possibility for that specific
outcome is exactly 7.
References
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3. Probability Theory The Britannica
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Upper Saddle River: Pearson.
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8221-0078-2 (p. 1)
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23 May 2008
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Probability Before Pascal. Johns
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24. Singh, Laurie (2010) "Whither Efficient
Markets? Efficient Market Theory and
Behavioral Finance". The Finance
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"Mathematical analyses of casino
rebate systems for VIP gambling".
International Gambling Studies. 11 (1):
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doi:10.1080/14459795.2011.552575 .
S2CID 144540412 .
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archon.educ.kent.edu. Retrieved
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31. Olofsson (2005) p. 8.
32. Olofsson (2005), p. 9
33. Olofsson (2005) p. 35.
34. Olofsson (2005) p. 29.
35. Burgin, Mark (2010). "Interpretations
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3 . Jedenfalls bin ich überzeugt, daß der
Alte nicht würfelt. Letter to Max Born,
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Bibliography
Kallenberg, O. (2005) Probabilistic
Symmetries and Invariance Principles.
Springer-Verlag, New York. 510
pp. ISBN 0-387-25115-4
Kallenberg, O. (2002) Foundations of
Modern Probability, 2nd ed. Springer
Series in Statistics. 650 pp. ISBN 0-387-
95313-2
Olofsson, Peter (2005) Probability,
Statistics, and Stochastic Processes,
Wiley-Interscience. 504 pp ISBN 0-471-
67969-0.
External links
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