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Probability

Probability

Classic Method

Number of outcomes in which the event occurs

Total Number of possible outcomes of an experiment

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Probability

Relative Frequency of Occurrence P(E) = n / N

Number of times an event occurred

Total number of opportunities for an event to occur

Subjective Probability

Probability

Experiment

Event

Elementary Events

Sample Space

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Probability

Unions and Intersections

Probability

Mutually Exclusive Events

Independent Events

Complementary Events

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Probability
Marginal, Union and Joint Probability

Marginal

Union

Joint

Probability
Addition Laws

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Probability
Multiplication Laws

Probability
Multiplication Laws

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Factorial

Permutation / Combination

Order of selection matters Order of selection does not matter

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Permutation / Combination

Order of selection matters Order of selection does not matter

Central Limit Theorem

The arithmetic mean of a sufficiently
large number of iterates of independent
random variables, each with a well-
defined expected value and well-defined
variance, will be approximately normally
distributed, regardless of the underlying
distribution.

Distribution of
Sample Means Distribution of
Individual Observations

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Central Limit Theorem

The Central Limit Theorem:

For almost all populations,

the sampling distribution of
the mean can be
approximated closely by a
normal distribution,
provided the sample size is
sufficiently large.

Central Limit Theorem

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Central Limit Theorem