CAIIB · ABM

Theory of Probability

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What is the definition of probability in statistical theory?

Probability is a numerical measure of the likelihood that an event will occur, expressed as a value between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

What is a continuous random variable in probability theory?

A variable taking any value within a continuous range

What is a sample space in probability theory?

A sample space is the set of all possible outcomes of a random experiment, denoted by S or Omega, and forms the foundation for calculating probabilities of events.

What is a discrete random variable in probability?

A variable that takes only distinct countable values

What is the classical definition of probability?

Classical probability defines the probability of an event as the ratio of the number of favourable outcomes to the total number of equally likely outcomes in the sample space.

What is the probability mass function (PMF)?

Function giving probability of each value of a discrete variable

What is an event in the context of probability?

An event is a subset of the sample space, representing one or more outcomes of a random experiment for which we want to calculate the probability.

What is the probability density function (PDF) used for?

To describe probability distribution of a continuous random variable

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