Quant Flashcards
An uncertain quantity/number.
Random Variable
An observed value of a random variable.
Outcome
A single outcome or a set of outcomes.
Event
Events that cannot both happen at the same time.
Mutually exclusive events
Those that include all possible outcomes.
Exhaustive events
The probability that is established by analyzing past data (outcomes).
Empirical Probability
Probability that is determined using a formal reasoning and inspection process (not data).
Priori Probability
Probability that is developed using personal judgement
Subjective Probability
Probability of an event regardless of the past or future occurrences of other events
Unconditional probability (marginal probability)
Probability that the Occurrence of an event affects the probability of the occurrence of another event
Conditional probability
what is the Multiplication Rule of Probability?
P(AB) = P(A | B) × P(B) : Used to determine joint probability of two events
what is the Addition Rule of Probability?
P(A or B) = P(A) + P(B) − P(AB) : Probability that at least one of the two events will occur
Probability that two events will both occur
Joint probability
Events that the occurrence of one has no influence on the occurrence of the others
Independent events
Used to determine that unconditional Probability of an event.
total probability rule
