Probability Theory & Distributions
1. Probability Theory
Probability is the branch of mathematics that studies the likelihood of occurrences of events.
It provides a quantitative description of uncertainty and randomness.
Basic Terminology in Probability:
1. Experiment: A process that leads to one of several possible outcomes.
2. Sample Space (S): The set of all possible outcomes of an experiment.
3. Event (E): A subset of the sample space that includes one or more outcomes.
4. Probability of an Event: P(E) = (Number of favorable outcomes) / (Total outcomes in sample
space).
Laws of Probability:
1. Addition Theorem: If A and B are mutually exclusive, P(A or B) = P(A) + P(B).
2. Multiplication Theorem: If A and B are independent, P(A and B) = P(A) * P(B).
3. Bayes' Theorem: P(A given B) = (P(B given A) * P(A)) / P(B).
2. Probability Distributions
1. Binomial Distribution: Used when an experiment has two outcomes (success/failure).
Formula: P(X = k) = (nCk) * p^k * (1 - p)^(n - k).
2. Poisson Distribution: Used to model the number of events occurring in a fixed interval.
Formula: P(X = k) = (e^(-lambda) * lambda^k) / k!.
3. Normal Distribution: A continuous distribution with a symmetric bell curve.
Formula: f(x) = (1 / (sigma * sqrt(2 * pi))) * e^(-((x - mu)^2) / (2 * sigma^2)).