Statistics 4.1 Empirical Probability & Subjective Probability
Formula for finding odds against:
1-P(E)/P(E)
What happens with the law of large numbers?
As the number of trials increases, the empirical probability better approximates what will happen in the classical probability
Difference between Classical & Empirical probability
Classical uses sample space Empirical uses actual data (based on observation)
Formula for finding odds in favor:
P(E)/1-P(E)
Formula for Empirical Probability
P(E)=f/n P(E) - Probability of an event f - frequency for class n - total frequencies in the distribution
Law of large numbers
a phenomenon that illustrates the connection between empirical and classical probability
Subjective Probability uses
a probability value based on an educated guess or estimate, employing opinions and inexact information
Odds are commonly used in
gambling games contests sweepstakes
Empirical Probability:
uses actual data to determine the numerical probability that an even will happen