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

..National Account- Descriptive Statistics, A country''s national accounts ...

A country''s national accounts are assumed to look as follows: GDP 1180 VAT and taxes 140 Commodity subsidies 60 Raw material and consumables 530 1. Calculate GVA 2. Calculate t

Define the partial market equilibrium model, Q. The following system of equ...

Q. The following system of equations illustrates the algebraic form of a partial (individual) market equilibrium model, which is a model of price (P) and quantity (Q) determination

Index number , how to write result in the end of price index number problem...

how to write result in the end of price index number problem

Correlation coefficient, Consider three stocks A, B and C costing $100 each...

Consider three stocks A, B and C costing $100 each. The annual returns on the three stocks have mean $5 and variance $10. a. Suppose that the returns on the three stocks are i.i

Probability, .1 Modern hotels and certain establishments make use of an ele...

.1 Modern hotels and certain establishments make use of an electronic door lock system. To open a door an electronic card is inserted into a slot. A green light indicates that the

Purposive or judgement sampling, Purposive or Judgement Sampling Under ...

Purposive or Judgement Sampling Under this method of sampling, the choice  of selection of sample  items from the universe  depends exclusively on the judgement  of the investi

Create the venn diagram, Create the Venn diagram: A   - you work for a...

Create the Venn diagram: A   - you work for an insurance company.  80% of your company's staff is sales force and 70% of your company's sales is force is male. in your company

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