00:01
Once again, welcome to a new problem where we're dealing with probabilities.
00:07
And when you think about probability, the issue of likelihood or what we can call chance becomes prominent.
00:18
So the likelihood of events and events of interest.
00:26
So these are issues of interest to all of us.
00:30
And we're using math to pretty much determine likelihood.
00:36
In a lot of things in life, you're always going to deal with probability.
00:41
For example, insurance deals a lot with probability, whether it's health insurance or maybe it's car insurance.
00:52
So health insurance, depending on the age group or medical history, you're thinking what's the probability of making payments, for example, and other types of applications in probability has to do with investments.
01:10
So if you say invest in stocks or invest in real estate, what's the probability of getting return to your investment? the goal of this particular problem, the first part is we want to have a discussion, including the experiment outcomes, sample spaces, and how these are useful to all of us.
01:43
So again, going back, we see that probability happens to be a branch of knowledge that revolves around statistics, and the purpose of probability is quantification.
01:59
Of chance processes.
02:02
So you're giving a number to something that has chance.
02:08
When we think about chance processes, the issue of randomization becomes a big deal because events or processes which have chance within them are randomized in nature.
02:25
And this simply means that this can always happen in the context of an experiment.
02:31
So within probability theory, we understand that the issue of quantification of chance becomes a big deal in probability.
02:40
That's the purpose of probability, meaning you're giving a number, a specific number, to probability.
02:48
And the chance processes are randomized, and they're randomized within an experiment.
02:54
And when we think about an experiment, we're looking at processes that happen to be performed under repetition.
03:05
So they can be performed an infinite number of times and you're always going to get typical similar results.
03:14
So the experiment, as expected, has known the results produced by the experiment and known as outcomes...