Theory of Probability

B.Com (Hons.) Ist Year

Unit no: Probability, Probability Distributions and Decision Theory
Paper No:IV
Theory of Probability

Fellow
Dr.Kawal Gill, Associate Professor
Department/College: Shri Guru Gobind Singh College of Commerce

Author
Dr. Madhu Gupta, Associate Professor
College/Department: Janki devi Memorial College of Commerce,
University of Delhi

Reviewer
Dr. Bindra Prasad, Associate Professor
College/ Department: Department of Commerce, Shaheed Bhagat
Singh College, University of Delhi

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 Theory of Probability

Table of Contents
 Chapter 1: Theory of Probability
 1.1: Introduction
 1.1.1: Meaning
 1.1.2: Basic terminology in probability
 1.2: Approaches to the calculation of probability
 1.2.1: Classical approach
 1.2.2: Relative frequency approach
 1.2.3:Subjective approach
 1.2.4: Axiomatic approach

 Summary
 Exercises
 Glossary
 References

1.1 Introduction

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Probability is a part of our everyday life because we live in a world in which we are unable
to forecast the future with complete certainty. In our daily life, while speaking we use words
like likely, possibly, probably. We make statements like

Possibly, it will rain today.

Probably, I may go to a movie.

He is likely to get the scholarship.

There are fifty-fifty chances of my success.

His chance of winning the game is very small.

In such phrases, an element of uncertainty or chance is there. The words - likely, possibly,
probably etc. convey that the event that we take under consideration may happen or may
not happen. Our need to cope with this uncertainty leads us to the study and use of a very
important branch of statistics, called the theory of probability.

Fig1.1 Game of chance

The term probability was originally associated with the games of chance like gambling,
throwing a die, tossing a coin, drawing a card or horse racing, where the outcome of a trial
is uncertain. Today the subject has developed to a great extent and there is not even a
single discipline in social, physical or natural sciences where probability theory is not used.
In particular, it is being widely used in the field of Statistics, Economics, Management,
Commerce, Politics, and Social sciences that involve making prediction in the face of
uncertainty. It is an essential tool in statistical inference and forms the basis of the
statistical decision theory. In business and economics, it is used in statistical quality control,
queuing problems, insurance, labour turnover, inventory control, etc. For example, future
population growth, GDP, export-import, future demand of product and services, stock prices
of different companies, likely efficiency of human resource, probable value of normal and
abnormal loss during production process are assessed with the help of probability theory.
Businesspersons, economists, stockbrokers, bankers, insurance people all take decisions
based on probability of future events.

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1.1.1 Meaning

The dictionary meaning of the word probable is “likely but not certain”. Therefore, we can
say probability is an index that numerically measures the degree of certainty or degree of
uncertainty in the occurrence of events (see web link1.1).

Normally probability of an event is defined as the ratio of the number of successful

outcomes to the total number of outcomes. It is expressed as fraction ( etc.) or as

decimals (0.5, 0.4, 0.38 etc.) between zero and one. Assigning a probability of zero means
that something can never happen; a probability of one indicates that something will
certainly happen.

Fig 1.2 Probabilities of different events

Value addition: Did you Know

A short history of theory of probability

The branch of mathematics known as probability theory was inspired by gambling problems.
The earliest work was performed by Girolamo Cardano (1501-1576), an Italian
mathematician, physician and gambler. In his manual Liber de Ludo Aleae, Cardano
discusses many of the basic concepts of probability complete with a systematic analysis of
gambling problems. Unfortunately, Cardano's work had little effect on the development of
probability because his manual, which did not appeared in print until 1663, received little
attention.

In 1654, another gambler named Chevalier de Méré created a dice proposition, which he
believed, would make money. He would bet even money that he could roll at least one 12 in
24 rolls of two dice. However, when the Chevalier began losing money, he asked his
mathematician friend Blaise Pascal (1623-1662) to analyze the proposition. Pascal
determined that this proposition would lose about 51% of the time. Inspired by this
proposition, Pascal began studying more of these types of problems. He discussed them
with another famous mathematician, Pierre de Fermat (1601-1665). The letters written by
these three constituted the first academic journal in probability theory.

The Dutch scientist Christian Huygens, a teacher of Leibniz, learned of this correspondence
and shortly thereafter (in 1657) published the first book on probability, entitled De
Ratiociniis in Ludo Aleae, it was a treatise on problems associated with gambling. Because

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 Theory of Probability

of the inherent appeal of games of chance, probability theory soon became popular, and the
subject developed rapidly during the 18th century. The major contributors during this period
were Jakob Bernoulli (1654-1705), Abraham de Moivre (1667-1754), Reverend Thomas
Bayes (1702-1761), and Joseph Lagrange (1736-1813) who developed probability formulas
and techniques.

In 1812, Pierre de Laplace (1749-1827) introduced a host of new ideas and mathematical
techniques in his book, Théorie Analytique des Probabilités. Before Laplace, probability
theory was solely concerned with developing a mathematical analysis of games of chance.
Laplace applied probabilistic ideas to many scientific and practical problems. The theory of
errors, actuarial mathematics, and statistical mechanics are examples of some of the
important applications of probability theory developed in the l9th century.

Like so many other branches of mathematics, the development of probability theory has
been stimulated by the variety of its applications. Conversely, each advance in the theory
has enlarged the scope of its influence. Mathematical statistics is one important branch of
applied probability; other applications occur in such widely different fields as genetics,
psychology, economics and engineering. Many workers have contributed to the theory since
Laplace's time; among the most important are Chebyshev, Markov, von Mises, and
Kolmogorov.

One of the difficulties in developing a mathematical theory of probability has been to arrive
at a definition of probability that is precise enough for use in mathematics, yet
comprehensive enough to be applicable to a wide range of phenomena. The search for a
widely acceptable definition took nearly three centuries and was marked by much
controversy. The matter was finally resolved in the 20th century by treating probability
theory on an axiomatic basis. In 1933 a monograph by a Russian mathematician A.
Kolmogorov outlined an axiomatic approach that forms the basis for the modern theory.
(Kolmogorov's monograph is available in English translation as Foundations of Probability
Theory, Chelsea, New York, 1950.) Since then the ideas have been refined somewhat and
probability theory is now part of a more general discipline known as measure theory."

Images of the statisticians who developed the theory of probability

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 Theory of Probability

Girolamo Cardano (1501-1576), Chevalier de Méré, Blaise Pascal (1623-1662), and Pierre
de Fermat (1601-1665)

Jacob Bernoulli (1654-1705), Abraham de Moiure (1667-1754), Reverend Thomas Bayes

(1702-1761), Joseph Lagrange(1736-1813) and Pierre de Laplace (1749-1827)

Source: http://www.cc.gatech.edu/classes/cs6751_97_winter/Topics/stat-
meas/probHist.html

http://science.jrank.org/pages/5501/Probability-Theory-History-probability-theory.html

FIG. SOURCE: http://static.guim.co.uk/sys-

images/Observer/Pix/pictures/2010/4/8/1270723979294/mathematician-girolamo-ca-
001.jpg

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http://upload.wikimedia.org/wikipedia/commons/thumb/2/2a/Pierre_Corneille_2.jpg/220px-
Pierre_Corneille_2.jpg

http://ebooks.adelaide.edu.au/p/pascal/blaise/portrait.jpg

http://upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Pierre_de_Fermat.jpg/225px-
Pierre_de_Fermat.jpg

http://sites.google.com/site/pl99323/_/rsrc/1243543586190/math1/jacob.jpg

http://www.swlearning.com/quant/kohler/stat/biographical_sketches/De_Moivre_2.jpeg

http://upload.wikimedia.org/wikipedia/en/thumb/d/d4/Thomas_Bayes.gif/300px-
Thomas_Bayes.gif

http://www.1902encyclopedia.com/A/ALG/joseph-lagrange.jpg

1.1.2 Basic Terminology in Probability

For a clear understanding of the meaning and definition of the word probability, it is
necessary to understand certain terms connected with the theory of probability. These are

Random experiment

An activity that results in a well-defined outcome is called an experiment. There are two
types of experiment viz.

(i) Deterministic experiments and

(ii) Random or Probability experiments

Deterministic experiments are those activities/experiments that have a fixed outcome or

result no matter any number of times they are repeated. Experiments done in science and
engineering are deterministic experiments. On the other hand, random or probability
experiments are those experiments which when repeated under identical conditions, do not
produce same outcome every time but the outcome in a trial is one of the several possible
outcomes.

In other words, if in an experiment all the possible outcomes are known in advance but
none of them can be predicted with certainty then such an experiment is called a random
experiment. For example tossing of a coin is a random experiment. Though we know,
there are two outcomes of this experiment ‘head up’ and ‘tail up’ but we cannot say with
certainty what it will be when such an act is performed. Other examples of random
experiments are rolling of a dice, drawing a card from a pack of cards, number of defective
items produced by a machine, or drawing a ball from a bag containing different types of
balls.

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Fig 1.3 Random experiments

Trial

The performance of a random experiment once is called a trial. For example, if a coin is
tossed four times, we say there are four trials of the experiment.

Event

An outcome of a random experiment is called an event. If we toss a coin, getting a tail

would be an event and getting a head would be another event. Similarly, if we draw a card
from a deck of cards, getting a queen of spades would be an event.

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Fig 1.4 Trail and event

Sample space

The set of all possible outcomes of a random experiment is called its sample space and it is
denoted by S.

If E1, E2, E3,.....,En are the possible outcomes of a random experiment, we have S = {E1, E2,
E3,....,En}.

Each element of S is called the sample point. The sample space of tossing of a coin is
represented as S = {H, T} .

Venn diagram

Venn diagram is a pictorial representation of probability concepts in which the sample space
is represented as a rectangle and the events in the sample space as portions of that
rectangle.

The Venn diagram of the experiment of tossing of a coin is represented as

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Fig 1.5 Venn diagram of tossing of coin

Value addition: Image

A Die

It is small cube used for playing some indoor games like ludo. It is also used in gambling. It
has six faces marked with dots numbering 1 to 6 in such a way that the sum of the numbers
on the opposite parallel faces is always seven. When a die is rolled, each face has the same
chance of coming up and the possible outcomes are:

A Coin

It is a piece of stamped metal used as money which has two faces known as head (H) and
tail (T).If we toss a coin, we shall get either head or tail.

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 Theory of Probability

A Deck of cards

A deck or pack of cards has 52 cards (plus two or three jokers, which are generally not
counted). These 52 cards are divided into four suits of 13 cards each. Out of these two
suites, spades and clubs are black in colour and two suites heart and diamond are red in
colour. 9 of the 13 cards are numbered from 2 to 10 and the remaining four cards are called
face cards. These face cards are an ace, a king, a queen and a jack. Court cards consist of

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the kings, the queens and the jacks and these are 12 in numbers.

1.2 Approaches to the Calculation of Probability

There are four different conceptual approaches to the study of probability, which define the
word differently, and the experts disagree about which approach is the proper one to use
(see web link 1.2). These are:

1. Classical approach
2. Relative frequency approach
3. Subjective approach and
4. Axiomatic approach

1.2.1 Classical Approach

Fig 1.6 Pierre-Simon Laplace (1749–1827)

Source- http://en.wikipedia.org/wiki/Pierre-Simon_Laplace

The classical definition of probability is the earliest and is identified with the works of Pierre-
Simon Laplace. As stated by him, “The probability of an event is the ratio of the number of
cases favorable to it, to the number of all cases possible when nothing leads us to expect
that any one of these cases should occur more than any other, which renders them, for us,
equally possible.” (see web link 1.3)

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Thus, this school of thought assumes that all the possible outcomes of an experiment are
mutually exclusive and equally likely. Under this approach, probability is defined as the ratio
of the number of favourable cases to the total number of equally likely cases. If the
probability of occurrence of an event is denoted by P(E), according to this approach

where ‘a’ is the number of favourable cases for the event and ‘n’ is the total number of
cases.

Probability of non-occurrence of an event ‘E’ is given by

And

Value addition: Did you Know

Equally likely and mutually exclusive events

If the different outcomes of a trial have equal chance of occurring, the outcomes are
said to be equally likely. For example: when we throw a die once, the chances of
each of 1, 2, 3, 4,5, 6 appearing is the same. Therefore, they are equally likely to
appear. Similarly, heads up and tail up in a toss of a coin are equally likely. Two or
more events are said to be mutually exclusive if the occurrence of any one of them
means the others will not occur (That is, we cannot have two events occurring at the
same time). Thus, occurrence of 3 and 4 in a single throw of a die are mutually
exclusive events. Similarly, heads up and tail up in a toss of a coin are mutually
exclusive as they cannot occur together.

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This approach to probability is useful where we deal with card games, dice games, coin
tosses and the like where various events are equally likely to happen. For example, when a
coin is tossed there are two equally likely cases – head and tail. The probability of getting
head on a single toss of a fair coin would be . Similarly, in case of rolling of a fair die there

are six equally likely cases and probability of getting a six in a single throw is and

probability of not getting a six is .

Fig 1.7 Application of classical approach - card, die and coin games

Classical probability is often called a priori probability because it enables us to obtain

probability of the occurrence of an event based on prior knowledge of the process involved.
This means we do not have to conduct any random experiment or trial to find the
probability of the occurrence of an event. For example, we do not have to perform
experiments to make our probability statements about fair coins, standard card decks, and
unbiased dice. We can make statements based on logical reasoning in such cases before
any experiment takes place.

Illustration: One card is drawn from a standard pack of 52. What is the probability that it
is

a) A king
b) A red card
c) One of the court cards (jack or queen or king)

Solution:

a) Probability that the drawn card is a king

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= P(A) =

Total number of equally likely cases = 52 and

Number of favourable cases = 4

 P(A) =

b) Probability that the drawn card is a red card

= P(B) =

Total number of equally likely cases = 52 and

Number of favourable cases = 26

 P(B) =

c) Probability that the drawn card is a court card

= P(C) =

Total number of equally likely cases = 52 and

Number of favourable cases = 4 x 3 = 12

 P(C) =

The definition of probability as per classical approach has limited applications. It could not
be applied to the cases where all outcomes are not equally likely. For example, it does not
apply to the probability of rain or to the probability of a professor taking a class on a
particular day or probability of a person aged 20 years surviving up to the age of 90 years.
In such cases, though there are two mutually exclusive events (rain or no rain, professor
will take the class or he will not take the class, the person will reach the age of 90 years or
he will not) the events are not equally likely and, therefore, we cannot apply classical
definition of probability. In fact, the classical definition is difficult to apply as soon as we
deviate from the experiments pertaining to coin, dice, cards, and other simple games of
chance.

In most of the real life situations and managerial problems, we cannot make statements
about probabilities without any experimentation or observation. Thus, in those cases
classical approach cannot be applied.

1.2.2 Relative Frequency Approach

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This approach uses the relative frequencies of past occurrences as probabilities. It is based
on the idea that the underlying probability of an event can be measured by repeated trials
(see web link 1.4). We determine how often something has happened in the past and use
that figure to predict the probability of that event. Some examples are

1. Observing births of newborns and finding how many of them are males.
2. Observing the articles produced by a machine over a period of time and finding how
many of them are defective.
3. Observing results of an examination over time and finding how many candidates
pass that exam.
4. Surveying many adults and determining the proportion who takes alcohol.

If an experiment is conducted n times under the same conditions and there are m outcomes
favouring an event (where m n), the probability of that event according to relative

frequency approach, is the ratio . The true probability of an event is determined when n

approaches infinity i.e.

P(E) =

It is of course impossible to conduct an infinite number of trials. However, it usually suffices

to conduct a large number of trials, where the standard of large depends on the probability
being measured and how accurate a measurement we need.

Thus, if we toss our fair coin 10 times we may not get 5 heads and 5 tails, but if this
experiment is carried out under same conditions for a very large number of times we should
expect approximately equal number of heads and tails and we take the probability of getting
head = 0.5 as shown in the following figure

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Fig 1.8 Relative frequency of occurrence of head in a toss of one coin

Since under this approach the probability of an event is determined objectively by repetitive
empirical observations of experimental outcomes, it is also called empirical probability.

Illustration: In a survey, it is found that 400 people out of 1000 people are graduate. If a
person is selected at random, find the probability of his being a graduate.

Solution: Let A be the probability of the person being a graduate, then

P(A) =

= 0.4

Therefore, the probability that the person selected at random is a graduate is 0.4 or .

This approach, though gives the most popular definition of probability, cannot be applied
in cases where events cannot be subjected to repetitive experiments. Thus, we cannot
estimate the probability that a scientist trying to discover a medicine of a rare disease will
succeed or a student will top the list of successful candidates appearing in a competitive
examination. Such cases are beyond the reach of an objective analysis and here we apply
subjective approach to probability.

Value addition: Did you Know

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Relative frequencies of letters in the English language

The letter frequencies (and hence their probability of occurring) in English language
are listed below

Letter Frequency Letter Frequency

a 8.17% n 6.75%
b 1.49% o 7.51%
c 2.78% p 1.93%
d 4.25% q 0.10%
e 12.70% r 5.99%
f 2.23% s 6.33%
g 2.02% t 9.06%
h 6.09% u 2.76%
i 6.97% v 0.98%
j 0.15% w 2.36%
k 0.77% x 0.15%
l 4.03% y 1.97%
m 2.41% z 0.07%

The letter ‘e’ is used most frequently to the extent of 12.702% and the letter ‘z’ is

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 Theory of Probability

used least, with a frequency of only .074%.

F.B.Morse used relative frequency of the occurrence of English letters for designing
codes for the transmition of messages. He used two symbols – a dot (.) and a dash
(-) to represent different letters. The criterion was ‘the more frequently a letter is
used the lesser should be the time for its transmission’. Therefore, he used a single
dot (.) to represent the letter ‘e’ (the most frequently occurring letter) and a single
dash (-) for second highest used letter ‘t’.

Source:

http://en.wikipedia.org/wiki/Letter_frequency

http://en.wikipedia.org/wiki/File:International_Morse_Code.svg

1.2.3 Subjective Approach

Subjective probabilities are based on the beliefs of the person making the probability
assessment. It is particularly useful in assigning meaning to the probability of events that in
principle can occur only once. Under this approach, probability is defined as the probability
assigned to an event by an individual based on whatever evidence is available. This
evidence may be in the form of relative frequency of past occurrences or it may be just an
educated guess.

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Fig 1.9 Subjective probability of ‘possibility of rain’

For example, the probability that a person will get through a competitive examination will
depend on the personal belief of the person assessing such probability, which will be based
on the student’s past academic record, his IQ level, his determination and hard work.
Different persons may assign different subjective probability to the same event with same
evidence or information. One may assign 0.6 probability to the student’s chances of passing
the examination while the other may assign it 0.8. Similarly, the probabilities whether the
home team will win or not depends much on the personal belief of the person and it will
differ from person to person.

Subjective probability assignments are often found when events occur only once or at most
a very few times. As the business and managerial decisions are concerned with unique
situations, it is very much used in business and managerial decision-making. Thus,
assignment of probability in cases like whether an order will be received or not, whether we
will get a contract or whether our sale will reach a particular level, depend on the personal
belief of the concerned managers and accordingly they take the decisions.

1.2.4 Axiomatic Approach

The axiomatic approach is entirely mathematical in character and is based on set theory.
When this approach is followed no precise definition of probability is given rather we have
certain axioms or postulates on which the probability calculations are based (see web link
1.5). These axioms include the concepts of both the classical and as well as the empirical
definition of probability and overcome the deficiencies of two.

With reference to finite sample space, there are three axioms:

1. Positiveness – The probability of an event is always greater than zero

i.e., P(E) > 0.

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When P(E) = 0, we say E is a null set with no sample point in it. It refers to an
impossible event.
2. Certainty – This axiom states that the probability of the whole sample space is one,
i.e., P(S) = 1, or in other words, we can say that the probability of an event that will
definitely occur is 1.
These two axioms indicate that the probability of any event ranges from 0 to 1.
i.e. 0 P(E) 1.
3. Unions - The probability of a composite event E is the sum of the probabilities of the
simple events of which E is composed. Thus, if E is a composite result of two
mutually exclusively events A and B then
P(E) = P(A U B) = P(A) + P(B)

Let S be the sample space associated with a random experiment and let E be a subset of S
representing an event, then as per axiomatic approach the probability of the event is given
as

Illustration: In a single throw of an unbiased die, find the probability of getting a number

1. Which is even
2. Which is a multiple of 3.

Solution: the sample space of this experiment has six elements, i.e.

S = {1, 2, 3, 4, 5, 6} or n(S) = 6

Fig 1.10 Sample space of rolling of a die

1. Let A = getting an even number, then A has 3 elements.

A = {2, 4, 6} or n(A) = 3

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 The probability of getting an even number is .

2. Let B = getting a multiple of three, then B has two elements.

B = {3, 6} or n(B) = 2

 The probability of getting a multiple of 3 is .

Illustration: Two coins are tossed simultaneously. Find the probability of getting

1. Two head
2. One head
3. No head

Solution: In a toss of two coins the sample space is given by

S = {HH, HT, TH, TT} or n(S) = 4

Fig 1.11 sample space of tossing of two coins

1. Let A = event of getting two heads, then

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A = {HH} or n(A) = 1

P(A) =

2. Let B = event of getting one head, then

B = {HT, TH} or n(B) = 2

P(B) =

3. Let C = event of no head, then

C = {TT} or n(C) = 1

P(c) =

Value addition: Humour

Source: http://www.cartoonstock.com/directory/p/probability.asp

Summary

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 Probability is an index that numerically measures the degree of the certainty or

degree of uncertainty in the occurrence of events. The probability of an event is
generally defined as the ratio of the number of successful outcomes to the total
number of outcomes. It is a number which has the value from 0 to 1 .The probability
of an event which cannot occur is 0 whereas an event which is certain occur has
probability 1.
 Probability theory is being widely used in the field of Statistics, Economics,
Management, Commerce, Politics, and Social sciences that involve making prediction
in the face of uncertainty. It is an essential tool in statistical inference and forms the
basis of the business decision theory.
 A random experiment is an experiment in which all the possible outcomes are known
in advance but none of them can be predicted with certainty. The performance of a
random experiment once is called a trial and an outcome of a random experiment is
called an event.
 Venn diagram is a pictorial representation of probability concepts in which the
sample space is represented as a rectangle and the events in the sample space as
portions of that rectangle.
 There are four different conceptual approaches to the study of probability, Classical
approach, Relative frequency approach, Subjective approach, and Axiomatic
approach.
 Classical approach assumes that all the possible outcomes of an experiment are
mutually exclusive and equally likely. Under this approach, probability is defined as
the ratio of the number of favourable cases to the total number of equally likely
cases.
 According to relative frequency approach, we determine how often something has
happened in the past and use that figure to predict the probability of that event.
 Subjective probabilities are based on the beliefs of the person making the probability
assessment. Under this approach, probability is defined as the probability assigned to
an event by an individual based on whatever evidence is available.
 The axiomatic approach is entirely mathematical in character and is based on set
theory. When this approach is followed no precise definition of probability is given
rather we have certain axioms or postulates on which the probability calculations are
based. These are axioms of positiveness, certainty and unions.

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Exercises
1.1 Define probability. Discuss the importance of probability in decision-making.
1.2 What are the different schools of thoughts on the interpretation of ‘probability’? How
does each school define it? Explain with suitable examples.
1.3 Distinguish between objective and subjective probabilities. Cite an example of each
type of probability.
1.4 Explain the following terms
a) Random experiment
b) Venn diagram
c) Sample space
d) A priori probability

Glossary

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Axiomatic approach: a mathematical approach based on axioms of positiveness, certainty

and unions.

Classical approach: an approach that defines probability as the ratio of the number of
favourable cases to the total number of equally likely cases.

Event: An outcome of a random experiment.

Probability: a way of expressing knowledge or belief that an event will occur or has
occurred.

Random experiment: an experiment in which all the possible outcomes are known in
advance but none of them can be predicted with certainty.

Relative frequency approach: it determines how often something has happened in the
past and use that figure to predict the probability of that event.

Sample space: the set of all possible outcomes of a random experiment.

Subjective approach: it defines probability as a way of expressing knowledge or belief of

an individual that an event will occur or has occurred.

Trial: the performance of a random experiment once.

Venn diagram: a pictorial representation of probability concepts in which the sample space
is represented as a rectangle and the events in the sample space as the portions of that
rectangle.

References
Federrick S. Hillier & Gerald J. Lieberman “operations research – concept and cases”
Tata McGraw Hill Publishing Co. ltd.

Institute of Lifelong Learning, University of Delhi

 Theory of Probability

Gupta, S.C., ‘‘Fundamentals of Statistics’’, Himalaya Publishing House.

Gupta, S.P., and Archana Gupta, ‘‘Statistical Methods’’, Sultan Chand and
Sons, New Delhi.

Kapoor V. K. ‘‘Fundamentals of Statistics – for business and economics’’, Sultan

Chand and Sons, New Delhi.

Levin, Richard and David S. Rubin, ‘‘Statistics for Management’’, 7th

Edition, Prentice Hall of India.

Sharma J.K., Business Statistics’ second edition ’pearsons education.

Srivastava T.N. & Shailja Rego, ‘‘Statistics for Management’’, Tata McGraw Hill
Publishing Co. ltd.

Web Links
1.1 http://www.tutornext.com/probability-statistics/280

1.2 http://en.wikibooks.org/wiki/Probability/Introduction

1.3 http://www.stats.org.uk/probability/classical.html

1.4 http://www.cardiff.ac.uk/maths/teaching/probability/probtheory/relative/

1.5 http://www.tutorvista.com/math/axiomatic-approach-to-probability

Institute of Lifelong Learning, University of Delhi