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Probability of an elementary events

  1. C) Name the most important events in the development of the accountancy profession in the world.
  2. Conditional probability
  3. Exercises (using conditional probability)
  4. Exercises (using independent events)
  5. Exercises (using probability of compound events)
  6. Independent events

In the presumed knowledge section we considered the idea that when we look at an experimental situation we find answers that indicate that a theoretical application is appropriate. This theoretical approach is called probability and is what we will explore in this chapter. Consider a number of equally likely outcomes of an event. What is the probability of one specific outcome of that event? For example, if we have a cubical die what is the probability of throwing a six?

Since there are six equally likely outcomes and only one of them is throwing a six, then the probability of throwing a six is 1 in 6. We would normally write this as a fraction or as a decimal or a percentage. Since probability is a theoretical concept, it does not mean that if we throw a die six times we will definitely get a six on one of the throws.

However, as the number of trials increases, the number of sixes becomes closer to of the total.

Generally, if the probability space S consists of a finite number of equally likely outcomes, then the probability of an event E, written P(E) is defined as:

where n(E) is the number of occurrences of the event E and n(S) is the total number of possible outcomes.

Hence in a room of fifteen people, if seven of them have blue eyes, then the probability that a person picked at random will have blue eyes is

where P(A') is the probability that the event A does not occur.

A' is known as the complement of A.

where P(A') is the probability that the event A does not occur.


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