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