Probability theory plays an important role in statistics because the concept of probability allows us to describe observable phenomena, the occurrence of which seems to be governed partly by chance. Faced with real data, the analyst needs to be able to differentiate between that which may be caused by an underlying structure and that which may be considered as random variation. Probability theory is the mathematical discipline that connects law and chance. In other words, with the help of probability theory, randomness can be described by mathematical law.
KeywordsRelative Frequency Sample Space Elementary Event Random Experiment Stochastic Independence
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