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calculating probabilities
Q:
It looks like there are three ways of dealing with this sort
of probability. Which way is best?
A: It all depends on your particular situation and what information
you are given.
Suppose the only information you had about the roulette wheel was
the probability of getting a green. In this situation, you’d have to
calculate the probability by working out the probability of not getting
a green:
1
- P(Green)
On the other hand, if you knew P(Black) and P(Red) but didn’t know
how many different colors there were, you’d have to calculate the
probability by adding together P(Black) and P(Red).
Q:
So I don’t have to work out probabilities by counting
everything?
A: Often you won’t have to, but it all depends on your situation. It
can still be useful to double-check your results, though.
Q:
If some events are so unlikely to happen, why do people
bet on them?
A: A lot depends on the sort of return that is being offered. In
general, the less likely the event is to occur, the higher the payoff
when it happens. If you win a bet on an event that has a high
probability, you’re unlikely to win much money. People are tempted to
make bets where the return is high, even though the chances of them
winning is negligible.
Q:
Does adding probabilities together like that always work?
A: Think of this as a special case where it does. Don’t worry, we’ll
go into more detail over the next few pages.
Probability
To find the probability of an
event A, use
P(A) = n(A)
n(S)
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A
I
A
I
is the complementary event of
A. It’s the probability that event
A does not occur.
P(A
I
) = 1 - P(A)
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