Abstract
Owing to the fact most decisions occur under uncertainties, and uncertainties are represented using probabilities, this chapter is dedicated to explaining the most important concepts of probability used later during the decision-making workflows. A section is dedicated to Bayes’ theorem, which is used later, in Chap. 7, for developing the value of information assessment. Concepts of random sampling and statistical inference are also introduced for subsequent use in Chap. 5, experimental design.
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Reference
Savage, L. (1954). The foundations of statistics. Wiley.
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Vilela, M.J., Oluyemi, G.F. (2022). Probability and Inference Theory. In: Value of Information and Flexibility. Petroleum Engineering. Springer, Cham. https://doi.org/10.1007/978-3-030-86989-2_3
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DOI: https://doi.org/10.1007/978-3-030-86989-2_3
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