Transcript Chapter 22: Probability

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Page 568: Insurance Rates
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Probability theory
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Chance or likelihood of an event happening
Probability
 Each even is assigned a number between 0 and 1.
 Impossible Event – 0% chance
 Certain Event – 100% chance
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Number of trials
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Outcomes
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Frequency
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Relative frequency (fraction or percent)
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Example
Complete
investigation 2
p.571with a partner.
Record data. You
have ten minutes.
Ready, set, go.
Complete #1, 3, 5, 6,
10 of investigation 3
p.572 with a partner.
Record data. You
have ten minutes.
Ready, set, go.
A sample space U is the set of all
possible outcomes of an experiment. It is
also referred to as the universal set U.
 Ways to represent sample spaces:
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› Lists, tables of outcomes, 2D grids, Venn
diagrams, tree diagrams.
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Mathematical or theoretical probability
is based on what we theoretically
expect to happen. Duh.
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In general , for an event A containing
equally likely possible results, the
probability of A occurring is
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An ordinary 6-sided die is rolled once.
Determine the chance of not getting a 1
or 2.
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Two events are complementary if
exactly one of the events must occur.
If A is an event, then A’ is the
complementary event of A, or “not A”.