Chapter 4

1. One of the basic requirements of probability is if there are k experimental outcomes, then ∑P(Ei)
=1
2. Initial estimates of the probabilities of events are known as prior probabilities.
3. Each individual outcome of an experiment is called a sample point.
4. The collection of all possible sample points in an experiment is the sample space.
5. Any process that generates well-defined outcomes is an experiment.
6. In statistical experiments, each time the experiment is repeated a different outcome may occur.
7. When the assumption of equally likely outcomes is used to assign probability values, the method
used to assign probabilities is referred to as the classical method
8. When the results of experimentation or historical data are used to assign probability values, the
method used to assign probabilities is referred to as the relative frequency method.
9. A method of assigning probabilities based upon judgment is referred to as the subjective
method.
10. The counting rule that is used for counting the number of experimental outcomes when n objects
are selected from a set of N objects where order of selection is not important is called
combination.
11. Two events with nonzero probabilities cannot be both mutually exclusive and independent.
12. Two events, A and B, are mutually exclusive and each have a nonzero probability. If event A is
known to occur, the probability of the occurrence of event B is zero
13. The sum of the probabilities of two complementary events is 1.0.
14. Bayes' theorem is used to compute the posterior probabilities.
15. The union of events A and B is the event containing all the sample points belonging to A & B or
both.