Risk Assessment: Tools, Techniques, and Their Applications

7.7 Summary

Probability theory is an integral part of risk assessment. Games of chance such as Craps and card games that have discrete probabilities associated with various outcomes are a good way of explaining probability. Real life events such as car accident potentials might have either a discrete probability associated with them or continuous. For most common types of risk assessments, however, the use of a discrete probability is probably advised so that it is more understandable. The readers are referred to a text on probability and statistics for a more in-depth understanding on these topics.