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  • Estimating Probability

    Simulating a random process
  • Let's turn to the computer to repeat this random process many many times.

    • Press Randomize. Notice that the applet randomly returns babies to mothers and determines how many babies are returned to the correct home (by matching diaper colors). The applet also counts and graphs the resulting number of matches.

    • Uncheck the Animate box and press Randomize a few more times. You should see the results accumulate in the table and the histogram.

    • Click on the histogram bar representing the outcome of zero mothers receiving the correct baby. The graph on the right now shows a “time plot” of the proportion of trials with 0 matches vs. the number of trials.

    • Set the Number of trials to 100 and press Randomize a few times, noticing how the behavior of this graph changes. 

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  • Interpreting Probability

  • In this course we will use the "long-run proportion" definition of probability to determine and make sense of probabilities.

    Definition: The probability of an outcome refers to the long-run proportion of times that the outcome would occur if the random process were repeated a very large number of times under identical conditions. You can approximate a probability by simulating the process many times. Simulation leads to an empirical estimate of the probability, which is the proportion of times that the event occurs in the simulated repetitions of the random process.

    When interpreting a probability statement, you should be able to identify

    i. what random process is being repeated over and over again (what are the identical conditions) and

    ii. what proportion is being calculated (e.g. proportion of wins).

    Your interpretation should not include the words “probability,” “chance,” "odds," or “likelihood" or any other synonyms of "probability."

    For example, if the probability of getting a red M&M candy is 0.20, we would interpret that as saying if we were to repeatedly select an M&M candy over and over forever from an infinitely large bag (!), then, in the long run, about 20% of the selected M&Ms will be red.

    Using this approach, how should we interpret the following statements: 

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