FINE 441 Lecture Notes - Lecture 1: Venn Diagram, Sample Space, Set Theory
Document Summary
Probability of any random phenomenon = proportion of times the outcome would occur in a very large number of repetitions. Law of large numbers: increase sample size -> estimate of probabilities will become more accurate. Sample space s: set of all possible outcomes. Sum of the probabilities for all possible outcome is 1. An event e is a subset of the sample space which can consist of more than one outcome. Venn diagram: representation of a sample space. P(b/t) = p(b t) / p(t) = . 21 -> p(t) = . 19 -> p(b t) = . 19*. 21 = . 04. Union of 2 events aub = set of outcomes included in a or b or both. Intersection of 2 events anb = set of outcomes included in both a and b. Complement of an event (a*) = set of all outcomes in the sample space which are not included in a. For any event e -> 0< p(e) <1.
