Importance and application of probability, Applied Statistics

Assignment Help:

Importance and Application of probability:

Importance of probability theory  is in all those areas where event are not  certain to take place as same  as starting with games of chances. Probability has become  one of the basis  tools  of statistics. Statistics and probability are much  interrelated with  each  other  that it is  difficult to discuss statistics  without  understanding the meaning of probability. A   knowledge of probability theory  makes  it easier, simpler  and possible to interpret the statistical  result, as many of the  statistical procedures include involve conclusions based on samples which are randomly choosen.

Probability theory is being applied not only in mathematical problems but also for the solutions  of  social  economical, political and business  problems. The insurance  insustry emerged in the 19th century, required exact or definite knowledge about  the  risk of loss inorder to calculate premium. Within  few decades the concept of probability  has assumed  great importance and the mathematical theory  of probability has become the basis of statistical  application  and  social  and decision making. In fact  probability has become a part of everyone life. In  personal and management decisions one faces uncertainty and  uses  probability theory. By organising information  and considering  it systematically, one will be  able to recognise  his or her assumptions, communicate his or reasoning to others and make a better decision than he  or she could by using a shot in the dark approach. Probability theory in fact is the foundation of statistical conclusion or inference.


Related Discussions:- Importance and application of probability

Utility index , If the economy does well, the investor's wealth is 2 and if...

If the economy does well, the investor's wealth is 2 and if the economy does poorly the investor's wealth is 1. Both outcomes are equally likely. The investor is offered to invest

Calculation of degrees of freedom, Calculation of Degrees of Freedom Fi...

Calculation of Degrees of Freedom First we look at how to calculate the number of DOF for the numerator. In the numerator since we calculate the variance from the sample means,

Determine nash equilibria, Two students are sitting in a lecture and consid...

Two students are sitting in a lecture and considering whether to ask a question from the professor (both of them are considering the same question). If they both ask, the questi

Find the rank correlation coefficient, 1. Calculate the mean and mode of: ...

1. Calculate the mean and mode of: Central size 15 25 35 45 55 65 75 85 Frequencies 5 9 13 21 20 15 8 3 The following data shows the monthly expenditure of 80 students of

Probability, 2.1 Modern hotels and certain establishments make use of an el...

2.1 Modern hotels and certain establishments make use of an electronic door lock system. To open a door an electronic card is inserted into a slot. A green light indicates that the

Multivariate statistical methods, As one of the oldest multivariate stati...

As one of the oldest multivariate statistical methods of data reduction, Principal Component Analysis (PCA)simplifies a dataset by producing a small number of derived

Artificial neural network, Normal 0 false false false E...

Normal 0 false false false EN-US X-NONE X-NONE

Critique 2, prepare a critical analysis of a quantitative study focusing on...

prepare a critical analysis of a quantitative study focusing on protection of human participants data collection data management and analysis problem statement and interpretation o

Prediction interval, Prediction Inte rval We would like to construct a...

Prediction Inte rval We would like to construct a prediction interval around    which would contain the actual Y. If n  ≥  30,     ± Zs e  would be the interval, where Z

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd