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Approaches to Probability 🎓

There are different schools of thought on how to define probability.


1. Classical / Mathematical Approach 🏛️

Based on the assumption that outcomes are equally likely. This is the "Priori" probability (calculated before the experiment).

  • Formula: P(A) = Favorable Cases / Total Exhaustive Cases
  • Limitation: Fails if outcomes are not equally likely (e.g., a biased coin).
  • Example: Tossing a fair coin P(H) = 1/2.

2. Relative Frequency / Empirical Approach 📊

Based on actual experiments performed many times. This is the "Posteriori" probability (calculated after observing).

  • Logic: If you flip a coin 1000 times and get Heads 520 times, P(H) ≈ 0.52.
  • As the number of trials increases, it approaches the Classical probability.
  • Application: Life expectancy tables, accident rates.

3. Subjective Approach 🧠

Based on beliefs, experience, and intuition of an individual.

  • Example: A manager saying "I am 80% sure this product will succeed."
  • Useful in business decisions where no past data exists.

4. Axiomatic Approach (Modern) 📐

Proposed by Kolmogorov. It defines probability as a function satisfying three axioms:

  1. P(A) ≥ 0 (Non-negativity)
  2. P(S) = 1 (Total probability is 1)
  3. If A and B are mutually exclusive, P(A ∪ B) = P(A) + P(B).

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