Probability in Action
We are living in a world where "events" happen all the time and we cannot always predict all the outcomes of the events accurately. However, with probability and statistics, we can predict their outcomes based on the acquired data of the events. Probability and statistics are used widely, not only in modern industries but also other fields such as military, weather, sports, etc. Risk management is one thing that is quite important to be taken into consideration for planning, operation and management of systems. I learned many things this week in the SYSE 515 class. One thing that I particularly liked was Bayes' Theorem. Unlike independent events such as flipping coins or rolling a dice, calculating conditional probabilities can sound more tricky since it can seem as if there is not enough information to solve the problem. Bayes' Theorem is applied here to find out conditional probabilities. Here is an example question from the following website. https://www.investoped...