Importance and application of probability, Applied Statistics

Assignment Help:

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.


Related Discussions:- Importance and application of probability

Probability and expectation, Ten balls are put in 6 slots at random.Then ex...

Ten balls are put in 6 slots at random.Then expected total number of balls in the two extreme slots

Professional Counselor, A researcher hypothesized that the pulse rates of ...

A researcher hypothesized that the pulse rates of long-distance athletes differ from those of other athletes. He believed that the runners’ pulses would be slower. He obtained a ra

Simple random sampling, Simple Random Sampling In Simple Random Sampli...

Simple Random Sampling In Simple Random Sampling each possible sample has an equal chance of being selected. Further, each item in the entire population also has an equal chan

Risk of portfolios, Risk of Portfolios So far, we have seen the applic...

Risk of Portfolios So far, we have seen the application of standard deviation in the context of risk in single investment. But usually most investors hold portfolios of securi

Determine probability that the person tested has the disease, There are two...

There are two diagnostic tests for a disease. Among those who have the disease, 10% give negative results on the first test, and independently of this, 5% give negative results on

Correlation coefficient test, 1. If you are calculating a correlation coeff...

1. If you are calculating a correlation coefficient testing the relationship between height and weight, state the null and alternative hypotheses. 2. What kind of relationship d

Testing of hypothesis, Testing of Hypothesis One objective of sampling...

Testing of Hypothesis One objective of sampling theory is Hypothesis Testing. Hypothesis testing begins by making an assumption about the population parameter. Then we gather

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd