Stochastics - Samenvattingen, Aantekeningen en Examens

If all outcomes in the sample space are equally likely, the following definition of probability applies: The probability of an event E, which is a subset of a finite sample space S of equally likely outcomes, is given by p(E) = |E|/|S|. Probability values range from 0 (for an event that will never happen) to 1 (for an event that will always happen whenever the experiment is carried out).

Everything you have learned about counting constitutes the basis for computing the probability of events to happen. In the following, we will use the notion experiment for a procedure that yields one of a given set of possible outcomes. This set of possible outcomes is called the sample space of the experiment. An event is a subset of the sample space.