Applications of Probability Theory
Probability theory is widely used in our life, it is used to find answers to various types of questions, such as will it rain tomorrow? what is the chance of landing on the Moon? what is the chance of the evolution of humans? and others. Some of the important uses of probability theory are,
- Probability theory is used to predict the performance of stocks and bonds.
- Probability theory is used in casinos and gambling.
- Probability theory is used in weather forecasting.
- Probability theory is used in Risk mitigation.
- Probability theory is used in consumer industries to mitigate the risk of product failure.
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Probability Theory
Probability Theory: Probability is defined as the chance of happening or occurrences of an event. Generally, the possibility of analyzing the occurrence of any event concerning previous data is called probability. For example, if a fair coin is tossed, what is the chance that it lands on the head? These types of questions are answered under probability.
Probability measures the likelihood of an event’s occurrence. In situations where the outcome of an event is uncertain, we discuss the probability of specific outcomes to understand their chances of happening. The study of events influenced by probability falls under the domain of statistics.
Table of Content
- What is Probability Theory in Maths?
- Real-Life Example of Probability – Flipping a Coin
- Probability Theory Definition
- Theoretical and Experimental Probabilities
- Theoretical Probability
- Experimental Probability
- Probability Theory Examples
- Basics of Probability Theory
- Random Experiment
- Sample Space
- Event
- Random Variable
- Discrete Random Variable
- Continuous Random Variable
- Probability Theory Formulas
- Probability Theory in Statistics
- Applications of Probability Theory
- Solved Examples on Probability Theory
In this article, we will learn about, Probability theory, its formulas, examples, applications, and others in detail.