Probability Workbook For Dummies - Deborah J. Rumsey - E-Book

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Deborah J. Rumsey

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Beschreibung

Sharpen your probability skills

What are the chances you'll ace your next exam? Land that promotion? Beat the house in Vegas? With Probability Workbook For Dummies, you'll stop guessing and start knowing. This book is your practical toolkit for learning to calculate the probability of, well, anything. Through crystal-clear explanations and real-world scenarios, you'll discover how probability shapes every decision you make—and how understanding it gives you a serious edge. You'll practice set theory, counting, permutations, combinations, conditional expectations, probability modeling, and beyond, and strengthen your analytical muscles with hands-on exercises that transform abstract concepts into practical skills. Probability Workbook For Dummies will help you play your cards right!

  • Get clear explanations and examples of the key concepts of probability
  • Boost your problem-solving abilities
  • Gain a fundamental understanding of how probability is used in daily life
  • Work through practice problems to solidify what you've learned

This Dummies guide is a great resource for high school and college students enrolled in statistics or probability courses. It's also helpful for professionals who need a refresher, as well as anyone interested in deepening their understanding of probability.

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Probability Workbook For Dummies®

To view this book's Cheat Sheet, simply go to www.dummies.com and search for “Probability Workbook For Dummies Cheat Sheet” in the Search box.

Table of Contents

Cover

Table of Contents

Title Page

Copyright

Introduction

About This Book

Foolish Assumptions

Icons Used in This Book

Beyond the Book

Where to Go from Here

Part 1: The Certainty of Uncertainty: Probability Basics

Chapter 1: Seeing Probability in Everyday Life

Understanding What Probability Means

Calculating Probabilities

Avoiding These Probability Misconceptions

Solutions to Problems in Seeing Probability in Everyday Life

Chapter 2: Teaming up with Probability Terms and Rules

Building up Your Set Notation

Calculating Probabilities

Following Probability Rules

Recognizing Independent Events

Discerning Mutually Exclusive Events

Solutions to Problems in Teaming up with Probability Terms and Rules

Chapter 3: Picturing Probabilities: Venn Diagrams, Trees, and Bayes’ Theorem

Using Venn Diagrams to Organize Relationships and Find Probabilities

Using Tree Diagrams to Display Marginal and Conditional Probabilities

The Law of Total Probability

Bayes’ Theorem

Solutions to Problems in Picturing Probabilities: Venn Diagrams, Trees, and Bayes’ Theorem

Part 2: Counting on Probability and Betting to Win

Chapter 4: Setting the Contingency Table with Probabilities

Organizing a Contingency Table

Finding and Interpreting Marginal Probabilities Using a Contingency Table

Finding and Interpreting Conditional Probabilities Using a Contingency Table

Checking for Independence of Two Events in a 2 x 2 Table

Solutions to Problems in Setting the Contingency Table with Probabilities

Chapter 5: Unraveling Counting Rules

Pondering Permutations

Figuring Permutation Probabilities

Catching up on Combinations

Probabilities Involving Combinations

Solutions to Problems in Unraveling Counting Rules

Chapter 6: Against All Odds: Probability in Gaming

Playing the Lottery

Betting on Blackjack

Reviewing a Bit about Craps

Poking into Poker Hands

Taking a Spin with the Roulette Wheel

Solutions to Problems in Against All Odds: Probability in Gaming

Part 3: From A to Binomial: Basic Probability Distributions

Chapter 7: Dealing with Discrete Probability Distributions

Finding the Probability Distribution of a Discrete Random Variable

Calculating Mean, Variance, and Standard Deviation of a Discrete Random Variable

Exploring the Discrete Uniform Distribution

Solutions to Problems in Dealing with Discrete Probability Distributions

Chapter 8: Juggling Success and Failure with the Binomial Distribution

Identifying the Characteristics of the Binomial Distribution

Finding Probabilities for the Binomial Distribution

Finding the Mean, Variance, and Standard Deviation of the Binomial Distribution

Solutions to Problems in Juggling Success and Failure with the Binomial Distribution

Chapter 9: Normalizing the Normal Distribution

Charting the Basics of the Normal Distribution

Understanding the Standard Normal (Z) Distribution

Finding Probabilities for a Normal Distribution

Handling Percentiles

Solutions to Problems in Normalizing the Normal Distribution

Chapter 10: Approximating a Binomial with a Normal Distribution

Identifying When You Need the Normal Approximation

Forming Z Using the Mean and Standard Deviation of the Binomial

Approximating to Solve Large-Scale Probability Problems

Solutions to Problems in Approximating a Binomial with a Normal Distribution

Chapter 11: Sampling Distributions and the Central Limit Theorem

Surveying a Sampling Distribution

Examining the Mean and the Standard Error of

Exploring the Shape of and the Central Limit Theorem

Finding Probabilities for the Sample Mean

Solutions to Problems in Sampling Distributions and the Central Limit Theorem

Chapter 12: Probability’s Role in Confidence Intervals and Hypothesis Tests

Reviewing Confidence Intervals and Probability

Exploring Hypothesis Testing and Probability

Solutions to Problems in Probability’s Role in Confidence Intervals and Hypothesis Tests

Part 4: Taking It up a Notch: Advanced Probability Models

Chapter 13: Working with the Poisson (a Nonpoisonous) Distribution

Identifying a Poisson Distribution from a Binomial Distribution

Obtaining Probabilities for a Poisson Distribution

Finding the Mean, Variance, and Standard Deviation of the Poisson Distribution

Processing the Poisson Process: The Business of Changing Units

Approximating the Poisson Distribution with the Normal Distribution

Solutions to Problems in Working with the Poisson (a Nonpoisonous) Distribution

Chapter 14: Covering All Angles of the Geometric Distribution

Characteristics of the Geometric Distribution

Finding Probabilities for the Geometric Distribution

Probing the Mean, Variance, and Expected Value of the Geometric Distribution

Solutions to Problems in Covering All Angles of the Geometric Distribution

Chapter 15: Making a Positive Out of the Negative Binomial Distribution

Checking to See When You Have a Negative Binomial Distribution

Noting Probabilities for a Negative Binomial

Figuring the Mean, Variance, and Standard Deviation of the Negative Binomial

Solutions to Problems in Making a Positive Out of the Negative Binomial Distribution

Chapter 16: Not Getting Hyper about the Hypergeometric Distribution

Identifying the Hypergeometric Distribution

Producing Probabilities for the Hypergeometric Distribution

Counting on the Expected Value, Variance, and Standard Deviation of the Hypergeometric

Solutions to Problems in Not Getting Hyper about the Hypergeometric Distribution

Part 5: For the Hotshots: Continuous Probability Models

Chapter 17: Staying in Line with the Continuous Uniform Distribution

Characterizing the Continuous Uniform Distribution

Finding Probabilities for the Continuous Uniform Distribution

Calculating the Mean, Variance, and Standard Deviation of the Continuous Uniform Distribution

Calculating Percentiles for the Continuous Uniform Distribution

Solutions to Problems in Staying in Line with the Continuous Uniform Distribution

Chapter 18: Exposing the Exponential Distribution (and Its Relationship to Poisson)

Characterizing the Exponential Distribution

Finding Probabilities for the Exponential Distribution

Expressing the Mean, Variance, and Standard Deviation of the Exponential

Relating the Exponential and Poisson Distributions

Solutions to Problems in Exposing the Exponential Distribution (and Its Relationship to Poisson)

Part 6: The Part of Tens

Chapter 19: Top Ten Probability Mistakes

Forgetting Where Probabilities Live

Misinterpreting Very Small Probabilities

Using Probability for Short-Term Predictions

Thinking 1-2-3-4-5 and 6 Can’t Win Powerball

Thinking “I’m on a Roll!”

Giving Every Two Outcomes a 50–50 Chance

Applying the Wrong Probability Distribution

Leaving Conditions Unchecked

Confusing Permutations and Combinations

Assuming Independence

Chapter 20: Ten Probability Distributions to Compare

Discrete Uniform Distribution

Binomial Distribution

Normal Distribution

Normal Approximation to the Binomial Distribution

Poisson Distribution

Geometric Distribution

Negative Binomial Distribution

Hypergeometric Distribution

Continuous Uniform Distribution

Exponential Distribution

Appendix A: Tables for Reference

Binomial Table

Normal Table

Poisson Table

Index

About the Author

Dedication

Author’s Acknowledgments

Connect with Dummies

End User License Agreement

List of Tables

Chapter 2

Table 2-1 Table of Probabilities

Chapter 6

TABLE 6-1 Totals, Outcomes, and Probabilities of Rolling Two Dice

TABLE 6-2 The Hierarchy of Types of Poker Hands and the Number of Hands Availabl...

Chapter 18

Table 18-1 The Poisson and Exponential Distributions

Appendix A

TABLE A-1 The cdf of the Binomial Distribution

TABLE A-2 The cdf of the Z Distribution (the Z Table)

TABLE A-3 The Poisson cdf

Guide

Cover

Table of Contents

Title Page

Copyright

Begin Reading

Appendix A: Tables for Reference

Index

About the Author

Dedication

Author’s Acknowledgments

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Probability Workbook For Dummies®

Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com

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Part 1

The Certainty of Uncertainty: Probability Basics

IN THIS PART …

Recognize that probability is part of everyday life.

Review probability terms, symbols, and rules.

Identify when events are independent or mutually exclusive.

Use Venn and tree diagrams to organize and find probabilities.

Calculate conditional probabilities with Bayes’ theorem.

Chapter 1

Seeing Probability in Everyday Life

IN THIS CHAPTER

Understanding the definition of probability

Calculating some probabilities

Becoming aware of probability misconceptions

Probability is part of our everyday lives, from checking the weather and deciding what to wear to looking at the stock market and making predictions to seeing something strange happen and saying, “What are the odds of that?” In this chapter, you explore the ways probability appears in everyday life and learn some important terms you’ll encounter throughout the rest of the book.

Understanding What Probability Means

Probability is a word that is used all the time, but it has a specific meaning in the statistics and probability world. First, you start with a random event, such as flipping a coin. Then you have the outcome, or results, of each flip: heads (H) or tails (T). The sample space (S) is the set of all possible outcomes of the random event. Then you have an event that is a certain result — or subset of results — in S, and these results are labeled with capital letters like A, B, C, and so on. And the probability of that event is noted by P(A), which is read “P of A.” For example, if you flip a coin three times, let and . The probability of some event A is the long-term chance that A occurs over many repetitions of your random event. For example, if there is a 40 percent chance of rain, it means that over many days with the same conditions, it rains 40 percent of the time.

Odds and probabilities are different. A probability is a number between zero and one, also known as a proportion, like 0.50 or 0.01. It is the total number of ways to do a particular item of interest divided by the total number of ways possible. Odds is a ratio, either the odds for a particular outcome or the odds against a particular outcome. The odds for a particular item are the number of ways to get the item of interest divided by the number of ways not to get the item of interest. For example, the probability of rolling a die and getting a 6 is ⅙, but the odds in favor of getting a 6 are 1 in 5, since there are five ways to not get a 6: 1, 2, 3, 4, 5, and one way to get a 6. The odds against an outcome are the number of ways to not get the outcome (5) divided by the number of ways to get it (1). So it’s 5-to-1 odds against getting a 6.

Probability can apply to an individual or to a group. Using the roll of a die as an example, the percentage of time you get a 6 when you roll a die is percent if you roll it an infinite number of times. However, the chance of getting a 6 when you roll a die once is 1 out of 6, or ⅙. The probability is the same; the interpretation is different. Also, remember that probability applies to the big picture. For example, if the chance of winning from a scratch-off lottery ticket is 1 out of 10, it doesn’t mean buying ten tickets guarantees you a win. It means over the course of an infinite number of tickets, 10 percent of them are winners.

This is another way of saying probability is both a long- and short-term value. If the chance of getting a single head on a single roll of a fair die is ½, then the chance is 1 out of 2. But it also means that if you roll the die an infinite number of times, half of your rolls will turn up heads.

Weather is built on long-term probabilities. If the weather reporter announces that there is a 50 percent chance of rain, that means on 50 percent of the days like this one, it rained. Another way to think of it is that there’s a 50–50 chance of rain, but that may not help much either. It’s more information than nothing, however.

Q. Tell whether the following statement is true or false: “Probability is a short-term idea. If you flip a coin ten times, you will get five heads and five tails.”

A. False. Probability is a long-term idea. If you flipped the coin an infinite number of times (long-term), you’d get half heads and half tails, but flipping ten times, you could get any combination of ten heads and tails, and they are all equally likely.

1 Tell whether the following statement is true or false: “Probability applies to single individuals only.”

2 If you flip a coin three times, what is S?

3 If you flip a coin three times, which outcomes are in event ?

4 What are the odds in favor of rolling a 5 or 6 on a fair die?

5 What are the odds against rolling a 1, 2, or 3 on a fair die?

Calculating Probabilities

Different methods exist for finding probabilities of events. One approach is to use the subjective method, which involves using your personal beliefs. For example, you may predict that it will rain based on how it looks outside. Another way is to use a simulation, in which you set up a model that includes probabilities and let it run its course many, many times, and see how many times a certain outcome appears. This method is used by meteorologists to predict events such as where a hurricane will make landfall; it’s also used by bracketologists during the NCAA basketball tournament to predict a winner.

You could also use math formulas and simple calculations to figure out probabilities (which you will do throughout this book). Simple calculations work for many problems, especially problems where all the outcomes are equally likely. For example, if you flip a coin once, your possible outcomes are heads or tails. Then, assuming the coin is fair, you have out of 2, or ½, which is the same for P(Tails). If you roll a die and let , you know out of 6 or .

Q. Deciding not to bring your lunch to work because someone will probably go out to eat with you is using what type of probability?

A. Subjective probability; it’s based on your beliefs.

6 Assume you flip a fair coin two times. What is the probability you get the same result on both flips?

7 Suppose that you roll two fair dice. What’s the probability of getting the same result both times?

8 Answer yes or no to the following question: Can every probability be calculated?

Avoiding These Probability Misconceptions

Some ideas about probability seem right but are actually incorrect, and some go against our intuition. First, if you have two outcomes, like heads and tails, their probabilities are both 50 percent, so we say the probability of rolling either option is 50–50. It’s 50–50 because the coin is fair, and each outcome is equally likely. But not all two-outcome scenarios play out that way. Just because a sample space S has two outcomes doesn’t mean they are both 50–50. For example, consider shooting free throws in basketball. Your chance of making a basket from the free-throw line is probably better than mine, but maybe not as good as a professional basketball player.

Another misconception is that patterns like 1-2-3-4-5-6-7 can’t occur randomly (like in the lottery), but of course, they can. Not only that, but they also have the same chance of appearing as any other combination. Yet another misconception is that you can be “on a roll” or “in a slump” when playing casino games. While this may be true when you are a baseball player trying to hit the ball, it’s not true that you can be in a slump or on a roll in casino games because trials are independent. That means one play doesn’t influence the next.

It’s interesting how even picking a number between 1 and 10 at random is not really random unless you use what is called a random number generator (a computer program that comes up with random numbers for you — or for the casinos). If you ask people to pick a number between 1 and 10, fewer people pick 1, 10, and 5 because they are on the ends of the spectrum or directly in the middle. More people pick 3 and 7 as these numbers are in the middle of the lower half and the middle of the upper half. The bottom line is that what you believe is random may not be from a probability standpoint.

The same is true for outcomes of ten coin flips. Some people think you should get something like HTHTHTHTHT if you flip a coin ten times, and you’d never get something like HTTTTTTTTTH. But that’s the whole point. These outcomes are equally likely because each flip is fair, and the flips are independent of each other. So, any combination has an equal chance of occurring.

Q. Tell whether the following statement is true or false: “HHHHHHHHHH would be harder to get on ten coin flips than HTHTHTHTHT.”

A. False. They have the same probability.

9 Tell whether the following statement is true or false: “As you come to a stoplight, it’s either red, green, or yellow. That means each color has ⅓ chance of occurring when you come to it.”

10 Tell whether the following statement is true or false: “People are more likely to choose the number 5 when asked to choose a random number between 1 and 10.”

11 What does it mean for rolls of a single die to be independent?

12 Tell whether the following statement is true or false: “Just because there are two outcomes does not mean the probability is ½ for each one.”

Solutions to Problems in Seeing Probability in Everyday Life

1 False. Probability applies to the entire population you are interested in as well. For example, if the chance of getting heads on a coin flip is ½, that means the next flip has a 50 percent chance of being a head, but it also means that if you flip the coin infinitely, you will get 50 percent heads.

2 If you flip a coin three times, . There are possible outcomes.

3.

4 The odds are 2 to 4 because there are two ways to get a 5 or 6 and four ways to not get a 4 or 6.

5 The odds are 3 to 3 because there are three ways to get 1, 2, or 3 and three ways to not get 1, 2, or 3.

6. . because all outcomes of coin flips are equally likely.

7

8 No. Some probabilities are subjective, which means they depend on the person thinking about the problem. You might say there is a 10 percent chance of rain, while the meteorologist may say it’s 20 percent. And someone else might say it’s 30 percent. Certain probabilities are mathematical, like coin flips, dice rolls, and card hands, and some aren’t.

9 False. Lights are red, yellow, and green for different amounts of time, depending on the intersection, but at a typical stoplight, the green light is on for the longest duration, allowing traffic to flow. The red light is on for a shorter period to indicate that traffic must stop, and the yellow light flashes briefly before the light turns red to warn drivers that the light is about to change.

Just because there may be three outcomes in a particular scenario does not mean the probability is ⅓ for each outcome. Don’t assume the probability is evenly split across the number of outcomes as with a fair coin (50–50) or fair six-sided dice (⅙ for each number).

10 False. According to research, more people pick 3 and 7 than 5. The point is, all ten numbers are not picked with equal probability, even though it may seem that they should. That’s why you can’t assume that probability-based phenomena are equally likely if human beings are involved in determining the outcomes. If you used a computerized random-number generator, then the outcomes would be equally likely (like lottery number picks).

11 Independent rolls of a die mean the die must be rolled so that the outcomes don’t affect each other.

12 True. The two probabilities can be anything as long as they sum to 1.