Random process
Any process determined by chance
Trial
One repetition of a chance process
Probability
A number between 0 and 1 that describes the proportion of times that outcome would occur in a very long series of repetitions
Law of large numbers
If we observe many repetitions of a chance process the proportion of times an outcome occurs, Approaches its probability
Understanding randomness
Randomness is only predictable in the long run, not the short run
“Law of averages” myth
If it hasn’t happened in a long time it is due to happen
This is NOT TRUE
Simulation
The imitation of some chance behavior
Based on a model that reflects the situation
The simulation process
Describe how the chance behavior can be modeled
State what you will record at the end of each trial
Perform many trials
Use the results to answer the question of interest
What # is considered statistically significant
5% or less
Probability model
Description of some chance process that consists of:
A list of all possible outcomes, and the probability of each outcome
Sample space
List of all possible outcomes
Event
Any collection of outcomes from some chance process
Probability models
Example
Roll a pair of dice
Let event A= sum is 5
4/36=0.111
Probability of event A ( P(A) )
of outcomes in event A
/
Total # of outcomes in sample space
Rules of a valid probability model
Prob of any event must be # between 0 and 1
All possible outcomes together must have probabilities that add up to 1
0 - prob an event does NOT occur
1 - prob it WILL occur
Complement rule
P(A complement) = 1- P(A)
Mutually exclusive
Events can NOT happen at the same time
P(A or B) = P(A) + P(B)
If events A and B are mutually exclusive
General addition rule
P(A or B) = P(A) + P(B) - P(A and B)
Finding P(A or B) when events are NOT mutually exclusive
Complement, Intersection, Union
Page 11 has images of Complement, Intersection, and Union
Intersection - “And” n
Union - “Or” u
Conditional Probability
The probability that one event happens given another event is known to have happened
P(A|B)
The vertical line means “given”
Calculating conditional probability
P(A n B) / P(B) = P(A|B)
(A n B) —> both events
(B) —> given event
Independent events
A and B are independent events if knowing whether one event has occurred or not does NOT change the probability that the other event occurs
If probabilities are = , events are independent
If probabilities are unequal, events are NOT independent
The general multiplication rule
Probability both events A and B occur
P(A n B) = P(A) x P(B|A)
Tree diagrams
Help us show the sample space of events that occur in sequence
All probs after the 1st event are conditional