Chapter 4

In This Chapter

Understanding the basic structure of probability spaces

Understanding discrete and continuous probability distributions

Getting familiar with the binomial and normal distributions

Learning the fundamental concepts of multivariate probability distributions

This chapter introduces some of the most important concepts related to the notion of probability. Probabilities underlie everything in the field of statistics. Having a clear sense of the basic ideas in probability theory will help you more easily digest the more advanced statistical ideas presented in this book.

Beneath every statistical application, there lies a group of possible outcomes. A coin may come up heads or tails. A stock may go up or down. A baby may be born with blue, green, or brown eyes. These are generally referred to as *experiments.* In any situation where probability and statistics are applied, it is important to understand the entire set of possible outcomes. This set of possible outcomes is known as the *event space. ...*

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