Probability Theory Archives - Probabilistic World

The Variance: Measuring Dispersion

Posted on December 8, 2018 Written by The Cthaeh Leave a Comment

A few posts ago I introduced you to the “three M’s” of statistics — the concepts of mean, mode, and median. Today I want to talk to you about a related concept called variance.

While the three M’s measure the central tendency of a collection of numbers, the variance measures their dispersion. That is, it measures how different the numbers are from each other.

Measuring dispersion is another fundamental topic in statistics and probability theory. On the one hand, it tells you how much you can trust the central tendency measures as good representatives of the collection. High variance usually means a lot of the numbers in the collection will be far away from those measures.

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An Intuitive Explanation Of Expected Value

Posted on November 24, 2018 Written by The Cthaeh 1 Comment

Expected value is another central concept in probability theory. It is a measure of the “long-term average” of a random variable (random process). I know this doesn’t sound too clear, but in this post I’m going to explain exactly what it means.

There are many areas in which expected value is applied and it’s difficult to give a comprehensive list. It is used in a variety of calculations by natural scientists, data scientists, statisticians, investors, economists, financial institutions, and professional gamblers, to name just a few.

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The Law Of Large Numbers: Intuitive Introduction

Posted on November 13, 2018 Written by The Cthaeh Leave a Comment

The law of large numbers is one of the most important theorems in probability theory. It states that, as a probabilistic process is repeated a large number of times, the frequencies of its possible outcomes will get closer and closer to their respective probabilities.

For example, flipping a regular coin many times results in approximately 50% heads and 50% tails frequency, since the probabilities of those outcomes are both 0.5.

The law of large numbers demonstrates and proves the fundamental relationship between the concepts of probability and frequency. In a way, it provides the bridge between probability theory and the real world.

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The Mean, The Mode, And The Median

Posted on October 1, 2018 Written by The Cthaeh Leave a Comment

The concepts of mean, median, and mode are fundamental to statistics, probability theory, and anything related to data analysis as a whole. Being this important, they deserve their own introduction.

In statistics, these 3 concepts are examples of measures of central tendency. This is a fancy way of saying that they are single values that summarize collections of values.

Let’s unpack the last sentence. What exactly do I mean by ‘values’ and ‘collections of values’?

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Occam’s Razor: A Probabilistic View

Posted on March 13, 2018 Written by The Cthaeh 7 Comments

“Simple explanations are better than complex explanations.” — have you heard this statement before? It’s the most simplified version of the principle Occam’s razor. More specifically, the principle says:

A simple theory is always preferable to a complex theory, if the complex theory doesn’t offer a better explanation.

Does it make sense? If it’s not immediately convincing, that’s okay. There have been debates around Occam’s razor’s validity and applicability for a very long time.

In this post, I’m going to give an intuitive introduction to the principle and its justification. I’m going to show that, despite historical debates, there is a sense in which Occam’s razor is always valid. In fact, I’m going to try to convince you this principle is so true that it doesn’t even need to be stated on its own.

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Not All Zero Probabilities Are Created Equal

Posted on August 20, 2017 Written by The Cthaeh Leave a Comment

What does a probability of zero mean? When people use it in everyday conversations, a statement like “the probability of something is zero” usually implies that that something isn’t going to happen. Or that it is impossible to happen. Or that it will never happen.

There’s zero chance I’m passing this exam!

Is this true? Can we really say that zero probability events are impossible to occur? I’m going to show you that this is, in fact, false. You will see zero probability events are more than possible: they happen all the time.

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