STAT-3090 Lecture Notes - Lecture 5: Free Throw, Sample Space, Statistical Inference
13 Feb 2018
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Businesses use probability as the basis for decision making in a world full of risk and uncertainty. Probability can be viewed as the foundation for statistical inference. Consider the challenge that nike faces in the decision of how many atlanta falcon"s jerseys replicas to produce with a particular player"s name. If nike produces too many jerseys and the player leaves for another team, nike and the shops selling nike goods face considerable losses. The knowledge of probability can help with such decisions. Select a transistor from a shipment and observe whether it meets quality control standards. Shoot 5 free throws and count the number of free throws made. Each of the previous examples meets the requirements for a random experiment: There is one distinct outcome for each trial. The set of all outcomes can be specified and is called the sample space. Sample point or outcome: the most basic result of an experiment (each individual outcome is a sample point)
