About This Chapter
Probability for Business Statistics - Chapter Summary
In this chapter on probability for business statistics, our instructors present subjective probability, the addition and multiplication rules of probability, the use of Venn diagrams in business statistics and more. Each video lesson is short, engaging and has been designed by a professional instructor. If you need to go back and review a specific topic from one of the videos, you can use the timeline feature. It's easy to study offline with our printable lesson transcripts, which focus on the keywords and themes from the lessons. Lesson quizzes and a chapter test help you check your comprehension and work well as test prep exercises to help you see how you'd do. These lessons can ensure you're able to:
- Define and share examples of subjective probability
- Provide descriptions of relative frequency and classical approaches to probability
- Use the correct formula to calculate possible outcomes
- Explain the uses of statistics, data analysis and probability in real life
- Share examples of the addition and multiplication rules of probability
- Give examples of contingency tables
- Exhibit knowledge of Venn diagrams
- Describe how Bayes' theorem is used
1. Subjective Probability: Definition & Examples
In this lesson, you will learn about subjective probability and how it reflects a personal belief that an event will happen rather than the result of formal calculations. We will also look at some examples.
2. Relative Frequency & Classical Approaches to Probability
To understand probability, it is important to understand the foundations. In this lesson, you will learn about relative frequency and the foundations of understanding probability.
3. Calculating Possible Outcomes: Definition & Formula
After completing this lesson, you will be able to state the fundamental counting principle and use it to calculate the number of possible outcomes for multiple events. You will also be able to use the fundamental counting principle to determine the number of permutations of a distinct set of objects.
4. Statistics, Data Analysis & Probability in Real Life
In this lesson, we take a look at how statistics, data analysis, and probability can be incredibly useful in modern life. In fact, they very well may change your mind on everything from getting into college to winning the lottery.
5. The Addition Rule of Probability: Definition & Examples
In this lesson, you will learn the differences between mutually exclusive and non-mutually exclusive events and how to find the probabilities of each using the Addition Rule of Probability.
6. The Multiplication Rule of Probability: Definition & Examples
The Multiplication Rule of Probability is a concept you will use frequently when solving probability equations. In this lesson, learn the two different scenarios in which you will use the multiplication rule of probability.
7. Contingency Table: Statistics, Probability & Examples
In statistics, dealing with situations where there are more than one variable can be difficult. Contingency tables can provide a way to make sense of the data given. This lesson will describe contingency tables and give some examples of them.
8. Venn Diagrams: Subset, Disjoint, Overlap, Intersection & Union
The Venn diagram was introduced by John Venn. Yes, the Venn diagram is named after a real person! His idea was to show sets in terms of pictures. The Venn diagram is now used in many fields, including mathematics. Let's take a look at John Venn's idea.
9. Bayes' Theorem: Definition, Formula & Usage
Using Bayes' Theorem allows you to revise probability values when making decisions. This lesson explains what Bayes' Theorem is and how it is applied in decision making.
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Other chapters within the Business 212: Business Statistics course
- Introduction to Business Statistics
- Introduction to Categorical Data
- Descriptive Statistics: Measurement
- Descriptive Statistics: Representation
- Measures of Dispersion in Business
- Measures of Association & Correlation in Business
- Probability Distributions for Business Statistics
- Sampling Methods for Statistics
- Confidence Intervals
- Hypothesis Testing in Business
- Analysis of Variance
- Nonparametric Methods in Statistics
- Regression Analysis
- Understanding Business Forecasting
- Using Control Charts in Business