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RESPONSE:

1. Discuss the three types of probability and the three assumptions underlying the probability theory.

There are types and approaches to probability, and some authors refer to both as types, so I will provide both the three types and three approaches for you to consider based on your course content.

A. Three types of probabilities are as follows:

1). Marginal Probability:

A marginal probability is usually calculated by dividing some subtotal by the whole. For example, the probability of a person wearing glasses is calculated by dividing the number of people wearing glasses by the total number of people. Marginal probability is denoted P(X), where X is some event.

2). Union Probability:

A union probability is denoted by P(X or Y), where X and Y are two events. P(X or Y) is the probability that X will occur or that Y will occur or that both X and Y will occur. The probability of a person wearing glasses or having blond hair is an example of union probability. All people wearing glasses are included in the union, along with all blondes and ...

Solution Summary

This solution discusses the three types of probability and the three assumptions underlying the probability theory.

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