Importance and application of probability, Applied Statistics

Importance and Application of probability:

Importance of probability theory  is in all those areas where event are not  certain to take place as same  as starting with games of chances. Probability has become  one of the basis  tools  of statistics. Statistics and probability are much  interrelated with  each  other  that it is  difficult to discuss statistics  without  understanding the meaning of probability. A   knowledge of probability theory  makes  it easier, simpler  and possible to interpret the statistical  result, as many of the  statistical procedures include involve conclusions based on samples which are randomly choosen.

Probability theory is being applied not only in mathematical problems but also for the solutions  of  social  economical, political and business  problems. The insurance  insustry emerged in the 19th century, required exact or definite knowledge about  the  risk of loss inorder to calculate premium. Within  few decades the concept of probability  has assumed  great importance and the mathematical theory  of probability has become the basis of statistical  application  and  social  and decision making. In fact  probability has become a part of everyone life. In  personal and management decisions one faces uncertainty and  uses  probability theory. By organising information  and considering  it systematically, one will be  able to recognise  his or her assumptions, communicate his or reasoning to others and make a better decision than he  or she could by using a shot in the dark approach. Probability theory in fact is the foundation of statistical conclusion or inference.

Posted Date: 9/27/2012 6:55:19 AM | Location : United States







Related Discussions:- Importance and application of probability, Assignment Help, Ask Question on Importance and application of probability, Get Answer, Expert's Help, Importance and application of probability Discussions

Write discussion on Importance and application of probability
Your posts are moderated
Related Questions
The project of building a backyard swimming pool consists of eight major activities and has to be completed within 19 weeks. The activities and related data are given in the follow

Now, let's look at a different linear combination. Suppose we are interested n comparing the average mean log income for no college education ( 16). 1. Write out the linear com

Prediction Inte rval We would like to construct a prediction interval around    which would contain the actual Y. If n  ≥  30,     ± Zs e  would be the interval, where Z

Is the random vector (Trunk Space, Length, Turning diameter) of US car normally distributed? Why? If yes, find the unbiased estimators for the mean and variance matrix of (Trunk Sp

The manager of Pizza Hut provides a delivery service for customers who telephone in an order. The manager would like to give callers an idea of the time it will take to deliver an

Assumptions in ANOVA The various populations from which the samples are drawn should be normal and have the same variance. The requirement of normality can be discarded if t

Find the Relation between two substance: The following table shows the results obtained in experiments aimed to determine how solubility of water in benzene depends on tempera

for this proportion, use the +-2 rule of thumb to determine the 95 percent confidence interval. when asked if they are satisfied with their financial situation, .29 said "very sat

TYPE I AND II Errors If a statistical hypothesis is tested, we may get the following four possible cases: The null hypothesis is true and it is accepted; The

Canonical correlation analysis (CC) allows the investigation of the relationship between two ,sets of variables. For example, a sociologist may want to investigate the Relationship