Concept of Probability
Concept of Probability
PROBABILITY
When it is not in our power to
determine what is true , we ought to
follow what is most probable.
Rene Descartes
“Statistics Means Never Having To
Say You’re Certain!”
MYLES HOLLANDER
(STATISTICIAN)
We expect statistical calculations to yield definite conclusions.
But in fact, every statistical conclusion is stated in terms of
probability. Statistics can be very diffi cult to learn if you keep looking
for definitive conclusions
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Why Study
PROBABLITY?
Why Study Probability
1. We tend to jump to conclusions
“ Girls don’t drive trucks , only boys do “ “ Boys don’t wear Pink “
Russo and Schoemaker (1989) tested more than 1,000 people and reported that 99% of them
were overconfident.
Most people created narrow ranges that included only 30% to 60% of the correct answers.
Simulated data from 10 basketball players (1 per row) shooting 30 baskets each. An “X”
represents a successful shot and a “–” represents a miss.
Why Study Probability
3. We see patterns in random data
Most people see streaks of successful shots and conclude this is not random
Each spot had a 50% chance of being “X” (a successful shot) and a 50% chance of being
“–” (an unsuccessful shot), without taking into consideration previous shots.
We see clusters perhaps because our brains have evolved to find patterns and do so very
well.
Why Study Probability And Statistics
4. We don’t realise coincidences are
common
While it is highly unlikely that any particular coincidence will occur, it
is almost certain that some seemingly astonishing set of unspecified
events will happen often, since we notice so many things each day.
When this test identifies a blood sample as having HIV present, what is
the chance that the donor does, in fact, have HIV, an what is the chance
the test result is an error (a false positive)?
Why Study Probability And Statistics
Most people, including most physicians, intuitively think that a positive test almost
certainly means that HIV is present.
Our brains are not adept at combining what we already know (the prevalence of HIV)
with new knowledge (the test is positive).
Why Study Probability And Statistics
All data in (A) were drawn from random distributions (Gaussian; mean = 120, SD = 15)
without regard to the designations “before” and “after” and without regard to any pairing.
(A) shows 48 random values, divided arbitrarily into 24 before–after pairs (which overlap
enough that you can’t count them all).
Why Study Probability And Statistics
Subjective probabilities:
◦ Someone badly wants a boy.
◦ They search the Internet and read about an interesting book:
◦ How to Choose the Sex of Your Baby explains the simple, at-home, noninvasive Shettles
method and presents detailed steps to take to conceive a child of a specific gender. The
properly applied Shettles method gives couples a 75 percent or better chance of having a
child of the desired sex. (Shettles, 1996)
◦ What is the chance that you’ll have a boy?
◦ If someone has complete faith that the method is correct, then they believe that the
probability, as stated on the book jacket, is 75%.- subjective probability.
The odds are defined as the probability that the event will occur divided by the
probability that the event will not occur.
◦ If the probability of having a boy is 51.7%, then you expect 517 boys to be born for every 1,000 births.
◦ Of these 1,000 births, you expect 517 boys and 483 girls (which is 1,000 − 517) to be born.
◦ So the odds of having a boy versus a girl are 517/483 = 1.07 to 1.00.
Probability vs. odds
◦Odds can be any positive value or zero, but they cannot be negative.
◦ A probability must be between zero and 1 if expressed as a fraction, or be between
zero and 100 if expressed as a percentage
◦A probability of 0.5 is the same as odds of 1.0. The probability of flipping a coin to
heads is 50%. The odds are 50:50, which equals 1.0.
◦As the probability goes from 0.5 to 1.0, the odds increase from 1.0 to approach infinity.
◦For example,if the probability is 0.75, then the odds are 75:25, 3 to 1, or 3.0
Probability vs.
statistics
◦ Probability calculations go from general to
specific, from population to sample, and
from model to data
country
14
town
12
frequency (%)
10
68%
95%
99.7%
-3 -2 -1 mean +1 +2 +3
Number of standard deviations either side of mean
About 68% of scores fall in the range of the mean plus and minus 1 SD;
95% in the range of the mean +/- 2 SDs;
99.7% in the range of the mean +/- 3 SDs.
68%
for a sample :
X - X
z
s
Raw score distributions:
A score, X, is expressed in the original units of measurement:
X = 236
X = 65
X 50 s 10 X 200 s 24
z = 1.5
X 0 s 1
z-score distribution:
X is expressed in terms of its deviation from the mean (in SDs).
z-scores transform our original scores into scores with a
mean of 0 and an SD of 1.
Raw IQ scores (mean = 100, SD = 15)
z for 100 = (100-100) / 15 = 0, z for 115 = (115-100) / 15 = 1,
z for 70 = (70-100) / -2, etc.
(a)
z (a) Area between (b) Area
mean and z beyond z
0.00 0.0000 0.5000
0.01 0.0040 0.4960
(b)
0.02 0.0080 0.4920
: : :
1.00 0.3413 * 0.1587
: : :
*
x 2 = 68% of scores
2.00 0.4772 + 0.0228 +
x 2 = 95% of scores
: : : #
x 2 = 99.7% of scores
3.00 0.4987 # 0.0013 (roughly!)
0.0228
?
Step 2: convert 89 into a z-score: