Probability

There are certain events that have 100% chances of occurrence, for example, a graduate in Mathematics can solve basic probability questions. And, there are certain events that have 0% chances of occurrence, for example, you can fly like airplane. Nothing can be more than 100%, and nothing can be less than 0% in these cases.

We say,

100% chances: Probability = 1

0% chances: Probability = 0

So, a probability is always between 0 and 1, inclusive.

Furthermore, there are events which are more likely to occur than others, for example, chance of a head in tossing a coin is more likely than chance of a six in rolling a dice. The aim of probability is to give numbers to these chances.

Next: Probability Basics

RELATED PAGES
- Probability
- Statistics for Finance


Basic Financial Terms
Basic Financial terms in Corporate and Mathematical Finance
Financial Portfolio Analysis
Selection of assets, risk and return, and portfolio analysis
Financial Mathematics Notes
View the online notes for Financial Mathematics (CT1)
Financial Computing with C++
Learn Financial Computing with C++ step by step