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What is Basic Probability Theory and Statistics?

What is Basic Probability Theory and Statistics?

Overview

Probability theory is a branch of mathematics that studies the likelihood of random phenomenaA random event’s outcome cannot be predicted in advance, but it may be one of many potential outcomesThe final result is thought to be decided by chance.

In everyday speech, the term “probability” has a variety of meaningsTwo of these are especially critical for the development and application of probability theoryOne understanding is that probabilities are relative frequencies, as observed in basic games ranging from coins and dice, to complex games like poker and blackjackThe distinguishing characteristic of chance games is that the outcome of any given trial cannot be predicted with confidence, even though the aggregate outcomes of a large number of trials exhibit some predictabilityFor example, the assertion that the likelihood of “heads” equals one-half when flipping a coin implies that the relative frequency with which “heads” actually occurs would be approximately one-half over a large number of tosses, although it contains no inference about the outcome of any given toss.

There are several related examples involving groups of individuals, gas molecules, and genesActuarial estimates of a person’s life expectancy at a given age represent the cumulative knowledge of a large number of people but do not purport to predict what will happen to any single individualSimilarly, estimates about the likelihood of a genetic disorder occurring in a child of established genetic makeup are claims about the relative frequency of incidence in a large number of cases, and not about a particular person.

Fundamental Rules of Probability

There are four fundamental laws of probabilityTypically, these laws are expressed more rigorously than required for the purposes of this paper, using set theory and probability notation.

Conclusion:

In summary, probability distributions for events often adhere to these four benign rules, which can most likely be deduced with theoretical knowledgeSuch likelihood estimates may be beneficial in clinical settings, for example, when determining the probability of a particular diagnosis based on the results of one or more diagnostic testsNumerous probability equations used in clinical research are conditional probabilistic in nature.

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