(2) Probability Theory

(2) Probability Theory

1. Sample space- all possible outcomes

   • Event- subset of sample space (may represent multiple outcomes)
   • Assumptions
     • All outcomes equally likely
     • Finite sample space
   • P=fav outcomes/pos outcomes

2. Compound events

   • Intersection
   • Union

3. Conditional probability

   • Occurrence of an event given another has occured
   • Bayes' Theorem
   • Total probability rule

4. Counting

   • Method of calculating number of all possible outcomes
   • Permutation rule
     • Order is important (a,b) does not equal (b,a)
   • Combinations rule
     • Order not important so smaller sample space