When you consider probability and your money, you decide how much risk you want to take. The government says that you will get back your money if the bank itself has financial trouble. If you put money in a bank that is insured by the federal government and you don't exceed the maximum insured amount, the probability of losing your money is 0.
But banks usually do not pay very much interest back to you on your savings. You have low risk and low rate of return. You've seen lots of ads on TV for trading stocks which means buying and selling stock in companies. Before buying a stock you need to investigate about the company.
If the company makes a lot of money with their product and if you own some of their stock you may make more money too, potentially more money than what you could earn at the bank.
Some of these things can be modeled and estimated effectively with probability and statistical methods. World View. More From Reference. Probability and statistics are actually quite extensively linked. The probability of an event is the likelihood that the event will happen.
If an event is sure to happen, then it has a certain probability, If an event is more likely to happen than not happen, then it has a likely probability. If the likelihood of two events happening is the same, then they have equal probability. Probability is simply how likely something is to happen. The analysis of events governed by probability is called statistics.
Try to apply the logic to your problem visually by extending it to Venn Diagrams and Sets if it becomes more difficult to understand just in your mind. In philosophy: Philosophers use game theory in various aspects of philosophy. In biology: It is applied to the analysis of the abnormal natural phenomenon in biology.
Probability plays a vital role in the day to day life. In the weather forecast, sports and gaming strategies, buying or selling insurance, online shopping, and online games, determining blood groups, and analyzing political strategies. Written by Nethravathi C, the Cuemath teacher. Tossing the coin: A coin has two faces, heads and tails. Math Concepts. Table of Contents 1. Introduction 2. What is probability?
Probability in Mathematics 4. Examples of Real Life probability 5. Summary 6. Introduction On tossing a coin, the outcome will be either ahead or a tail, the result is easily predictable.
The likelihood of the occurrence of any event can be called Probability. Application of probability Some of the applications of probability are predicting the outcome when you: Flipping a coin. Choosing a card from the deck. Throwing a dice. Pulling a green candy from a bag of red candies. Winning a lottery 1 in many millions. Also read: What is the importance of probability in maths? Probability in Mathematics Al-Khalil, a middle eastern mathematician, wrote the Book of Cryptographic Messages, which demonstrates the first use of permutation and combination to list all the Arabic words with or without vowels.
Formula to calculate the probability Examples of Real Life probability Weather Planning: A probability forecast is an assessment of how likely an event can occur in terms of percentage and record the risks associated with weather. Sports Strategies: In sports, analyses are conducted with the help of probability to understand the strengths and weaknesses of a particular team or player.
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