FS_2.02 CONDITIONAL PROBABILITY

Question 1

What is the term for the probability of an event under the given condition / the probability of an event, given the occurrence of the condition?

Answer 1

Conditional probability.

P (event|condition) = P(event^condition) / P(condition)

Question 2

What is the term for what is being evaluated under the given condition?

Answer 2

Event

Question 3

What is the term for the reference, or the state assumed as the standard?

Answer 3

Condition

Question 4

TRUE OR FALSE: Frequentism operates in the context of the long run.

Answer 4

TRUE.

This means that the probability of an outcome is a relative frequency (or proportion) after an infinite of events/trials.

Question 5

TRUE OR FALSE: Bayesians also operate in the context of IN THE LONG RUN.

Answer 5

FALSE.

They do not. For them, the probability of an observation should depend on pre-existing (a prior) information