Combinations refer to the different subgroups that can be formed by sampling a larger group or population without considering the order of elements. Combinations are essential in probability, statistics, and various branches of mathematics.
A confidence interval is a range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter. The interval has an associated confidence level that quantifies the level of confidence that the parameter lies within the interval.
A decision table is a tool used to aid decision making by listing problems that require actions, alongside the estimated probabilities of outcomes. When probabilities are hard to estimate, criterions like maximax and maximin are used to choose the most favorable action.
Disjoint events, also known as mutually exclusive events, are pairs of events in a probability space that cannot occur at the same time.
Expected Value (EV) is a fundamental concept in probability and statistics used in decision making, which represents the average outcome when accounting for all possible scenarios, weighted by their respective probabilities.
The Law of Large Numbers (LLN) is a mathematical principle that states that as the number of exposures increases, the results become more predictable and closer to the expected outcomes.
Normal distribution, in statistics, is a continuous probability distribution that is perfectly symmetrical around the mean, signifying that data near the mean are more frequent in occurrence than data far from the mean. It is completely defined by its mean and standard deviation.
Permutations refer to the different arrangements or orderings of a set of items, where the order of elements is crucial in their selection.
Probability is the likelihood that a particular outcome will occur, quantified on a scale from 0 (indicating certainty that it will not occur) to 1 (indicating certainty that it will occur). It is a key concept in decision-making models, often subjective in nature.
In statistics, a probability density function (PDF) defines the likelihood of a discrete or continuous random variable taking specific values or a range of values, respectively.
A random sample is a subset of individuals selected from a larger population in such a way that every individual has an equal and independent chance of being chosen.
A program that generates a sequence of numbers that seem to be completely random. Random numbers provide a way of selecting a sample without human bias.
A stochastic process or variable relies on probabilistic behavior and chance, commonly used in fields like statistics, finance, and engineering to model systems that are inherently random.
Subjective probabilities represent individual beliefs about the likelihood of an event occurring, differing from objective probabilities that are based on statistical evidence.
A tree diagram is a graphic representation of a sequence of events where subsequent decisions depend on the results of previous decisions. Tree diagrams are used to map the possible alternatives and develop strategies for decision making.
