BUSS1020 Lecture Notes - Lecture 4: Mutual Exclusivity, Black Cards, Collectively Exhaustive Events
Document Summary
The principles of probability help bridge the worlds of descriptive statistics and inferential statistics. In all these instances, the probability involved is a proportion or fraction whose value ranges between 0 and 1, inclusive (cannot be negative or more than 1). An event that has no chance of occurring (the impossible event) has a probability of 0. An event that is sure to occur (the certain event) has a probability of 1. There are three types of probabilities: priori, empirical, subjective. In the simplest case, where each outcome is equally likely, the chance of occurrence of the event is defined in equation (1). In a priori probability, the probability of an occurrence is based on prior knowledge of the process involved. Consider a standard deck of cards that has 26 red cards and. The probability of selecting a black card is 26/52 = 0. 50 because there are x = 26 black cards and t = 52 total cards.