Monday, November 26, 2007

Probability theory

Probability theory is the mathematical study of phenomena characterized by randomness or uncertainty.More precisely, probability is used for modelling situations when the result of an experiment, realized under the same circumstances, produces different results (typically throwing a dice or a coin). Mathematicians and actuaries think of probabilities as numbers in the closed interval from 0 to 1 assigned to "events" whose occurrence or failure to occur is random.

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