Chapter 18
Introducing Probability
IN THIS CHAPTER
Defining probability
Working with probability
Dealing with random variables and their distributions
Focusing on the binomial distribution
Throughout this book, I toss around the concept of probability because it’s the basis of hypothesis testing and inferential statistics. Most of the time, I represent probability as the proportion of area under part of a distribution. For example, the probability of a Type I error (also known as α) is the area in a tail of the standard normal distribution or the t distribution.
In this chapter, I explore probability in greater detail, including random variables, permutations, and combinations. I examine probability’s fundamentals and applications and then zero in on a couple of specific probability distributions. Then, after telling you about probability concepts, I discuss probability-related Excel worksheet functions.
What Is Probability?
Most of us have an intuitive idea about what probability is all about. Toss a fair coin and you have a 50-50 chance it comes up Heads. Toss a fair die (one ...
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