Statistics Flashcards
(11 cards)
What is a Random Experiment?
A Random Experiment is an action or process that leads to one of several possible outcomes.
What does it mean when listed outcomes must be “exhaustive”?
It means that all possible outcomes must be included.
What does it mean when outcomes must be “mutually exclusive”?
Mutually exclusive means that no two outcomes can occur at the same time.
What is a sample space?
A sample space is a list of all possible outcomes of an experiment. The outcomes must be exhuastive and mutally exclusive.
What are the requirements for probabilities?
The probability must lie between 0 and 1. The sum of all probabilities must be equal to 1.
What is the “Classical approach”?
The Classical Approach states that all probabilities are equal. For example, the chances of heads and tails are 50/50. The chances of a six sided die is 1/6.
What is the relative frequency approach?
The relative frequency approach is the probability in the long run. For example, taking the probability of one sample in May 27, 2017 is not enough to be considered a relative frequency approach. This method must be done over an large period of time with many samples.
What is the subjective approach?
The subjective approach is not indicative. It is based on opinion and speculation. For example, stock markets where past data and factors are used to predict the probability of something. We do not have all the factors, and the data cannot be determined over a long period of time because of the dynamic nature of stocks.
What is an event? (In statistics)
An event is a collection or set of one or more simple events in a sample space.
What is the “Probability of an Event”?
The Probability of an Event is the sum of all the probabilites of the simple events that constitute the event.
What is the Interaction combination?
The interaction combination is the event that occurs when both A and B occur. It is denoted by A and B. The probably of the interaction is called the joint probability.
