STATS 2B03 Chapter Notes - Chapter 3: Mutual Exclusivity, Prior Probability, Posterior Probability
19 Jun 2013
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3. 2 two views of probability: objective and subjective. Concept of objective probability may be categorized further under the headings of classical probability and the relative frequency concept of probability. Classical probability: if an event can occur in n mutually exclusive and equally likely ways, and if m of these possess a trait e, the probability of the occurrence of e is equal to m/n. Subjective probability: measures the confidence that a particular individual has in the truth of a particular proposition. Bayesian methods: example of subjective probability, since it takes into consideration the degree of belief that one has in the chance that an event will occur. Prior probability: probability based on prior knowledge, prior experience, or prior results derived from prior data collection activity. Posterior probability: probability obtained by using new information to update or revise a prior probability.
