Flashcard: Introduction to Business Probability — 14 carte

Random experiment — definition?

A repeatable process with known outcomes.

Trial — role?

Single execution producing one result.

Sample space — what?

All possible outcomes of an experiment.

Outcome — what?

A specific result from the sample space.

Event — definition?

A set of outcomes relevant to a question.

Mutually exclusive — meaning?

Events that cannot occur together.

Exhaustive events — meaning?

Events covering all possible outcomes.

Venn diagram — purpose?

Visualize relationships between events.

Subjective probability — basis?

Person’s beliefs or information.

Frequentist probability — basis?

Long-run relative frequency.

Probability axioms — purpose?

Ensure consistent probability measures.

Axiom of non-negativity — states?

Probabilities are ≥ 0.

Axiom of normalization — states?

Probability of sample space = 1.

Expected value — meaning?

Weighted average of outcomes.