Quantitative Business Analysis QBA 120 Lecture Notes - Lecture 7: Venn Diagram, Bayes Estimator, Mutual Exclusivity
17 Aug 2016
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We use the population information to infer the probable nature of the sample. An experiment is an act of process of observation that leads to a single outcome that cannot be predicted with certainty. A sample point is the most basic outcome of an experiment. The sample space of an experiment is the collection of all its sample points. The probability of a sample point is a number between 0 and 1 inclusive that measures the likelihood that the outcome will occur when the experiment is performed. Let pi represent the probability of sample point i. All sample point probabilities must lie between 0 and 1. The probabilities of all sample points within a sample space must sum to 1. An event is a specific collection of sample points. A simple event contains only a single sample point. A compound event contains two or more sample points.
