Statistical Foundations of Quantitative Risk and Cost Analysis
By the end of this chapter, you will be able to:
• Define the Law of Large Numbers and the concepts of statistics and probability that derive from it.
• Explain the difference between probability and odds, and understand the roles each plays in risk decision-making.
• Apply basic rules of probability, including joint probability and union.
• Prepare a distribution of outcomes and recognize types of normal distributions (wide, narrow) and when a distribution is not normal.
• Define the three measures of central tendency (mean, median, and mode) and ...