Abstract
In this chapter we introduce the language of probability theory on finite sample spaces. A probability measure assigns to each possible outcome of a random experiment a number that is interpreted as its “likelihood” of occurrence. We explore elementary properties of probability measures and introduce the important concepts of expectation and variance of a random variable. In the last section we also give a very brief account of the important discussions about the meaning of probability.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
D. Gillies, Philosophical Theories of Probability (Routledge, London, 2000)
I. Hacking, The Emergence of Probability: A Philosophical Study of Early Ideas About Probability, Induction and Statistical Inference (Cambridge University Press, Cambridge, 2006)
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Koch-Medina, P., Munari, C. (2020). Probabilities and Expectations. In: Market-Consistent Prices. Birkhäuser, Cham. https://doi.org/10.1007/978-3-030-39724-1_2
Download citation
DOI: https://doi.org/10.1007/978-3-030-39724-1_2
Published:
Publisher Name: Birkhäuser, Cham
Print ISBN: 978-3-030-39722-7
Online ISBN: 978-3-030-39724-1
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)