Elements of Probability Theory

  • Ron C. Mittelhammer
Chapter

Abstract

The objective of this chapter is to define a quantitative measure of the propensity for an uncertain outcome to occur, or the degree of belief that a proposition or conjecture is true. This quantitative measure will be called probability and is relevant for quantifying such things as how likely it is that a shipment of smart phones contains less than 5 percent defectives, that a gambler will win a crap game, that next year’s corn yields will exceed 80 bushels per acre, or that electricity demand in Los Angeles will exceed generating capacity on a given day. This probability concept will also be relevant for quantifying the degree of belief in such propositions as it will rain in Seattle tomorrow, Congress will raise taxes next year, and the United States will suffer another recession in the coming year.

Keywords

Corn Income Gasoline Product Line Defend 

Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  • Ron C. Mittelhammer
    • 1
  1. 1.School of Economic SciencesWashington State UniversityPullmanUSA

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