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Probability Vivek

This document discusses the topic of probability. It begins by defining probability as the branch of mathematics dealing with the likelihood of events occurring. It then discusses key probability concepts like sample space, events, and rules of probability. It explains independent and dependent events and conditional probability. Finally, it provides examples of applications of probability in various fields like games of chance, risk assessment, insurance, weather forecasting, stock market analysis, medical diagnosis, and more.

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Rupesh Manvar
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13 views8 pages

Probability Vivek

This document discusses the topic of probability. It begins by defining probability as the branch of mathematics dealing with the likelihood of events occurring. It then discusses key probability concepts like sample space, events, and rules of probability. It explains independent and dependent events and conditional probability. Finally, it provides examples of applications of probability in various fields like games of chance, risk assessment, insurance, weather forecasting, stock market analysis, medical diagnosis, and more.

Uploaded by

Rupesh Manvar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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J d college of Engineering &

Managementti

Name :- VIVEK MANVAR

Topic :- Probability
Probability
Probability is the branch of mathematics that deals with the likelihood of events
occurring. In this presentation, we will explore the definition of probability and its
applications in real life.

by Rupesh Manvar
Basic Concepts in Probability
Sample Space Events
The sample space is the set of all possible outcomes An event is a subset of the sample space,
of an experiment. Understanding the sample space representing a specific outcome or combination of
is crucial in calculating probabilities. combination of outcomes. Events help us analyze
analyze and predict the occurrence of particular
particular outcomes.

Probability Calculations Rules of Probability


Probability is expressed as a value between 0 and 1, There are fundamental rules and laws that govern
representing the likelihood of an event occurring. probability, such as the addition and multiplication
Calculating probabilities involves mathematical rules. These rules help us combine and analyze
formulas based on the sample space and events. multiple events.
Independent and Dependent Events

1 Independent Events
In independent events, the outcome of one
event does not affect the outcome of
Dependent Events 2 another event. Rolling dice and flipping coins
Dependent events are events where the are examples of independent events.
outcome of one event affects the outcome
of another event. Drawing cards from a deck
without replacement is an example of
dependent events. 3 Conditional Probability
Conditional probability is the probability of
an event occurring given that another event
has already occurred. It plays a crucial role in
dependent events analysis.
Applications of Probability in Real Life

Games of Chance Risk Assessment Insurance Weather


Forecasting
Probability is used to Risk assessment relies on Insurance companies use
analyze and predict probability analysis to probability to assess Probability models are
outcomes in games of evaluate the likelihood risks, set premium rates, used in weather
chance, such as poker, and impact of various and determine coverage. forecasting to predict the
blackjack, and roulette. risks. It helps in making Probability analysis plays likelihood of rain, storms,
Understanding informed decisions to a key role in estimating and other weather
probability can improve mitigate potential the likelihood of various conditions. Accurate
decision-making in threats. events, such as accidents forecasts help in
gambling. or natural disasters. planning outdoor
activities and managing
risks.
Stock Market Analysis
1 Stock Probability 2 Options Pricing
Probability analysis is employed to Options pricing utilizes probability models
forecast stock prices, assess investment to evaluate the likelihood of different
risks, and make informed trading price movements. It helps traders
decisions. Understanding probability determine fair values and manage risk
helps investors navigate the volatile stock exposure.
market.

3 Risk Management
Probability analysis is crucial in risk management strategies within the stock market. It enables
traders to calculate potential losses and establish risk limits.
Medical Diagnosis
Genetic Conditions Disease Screening Treatment Outcomes
Probability is used in medical Screening tests, such as
diagnosis when analyzing genetic mammograms or COVID-19 tests, Probability is utilized to determine
conditions. It helps assess the involve probability analysis to the effectiveness of different
likelihood of inheriting certain evaluate the probability of having treatments and predict patient
diseases and guide treatment a particular disease. outcomes. It aids in developing
options. personalized treatment plans.
Conclusion
Probability is a powerful tool that allows us to analyze and predict uncertain events
in various fields. Its applications in real life are vast and continue to shape our
decision-making processes.

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