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Lesson 3 of 20
Quiz

Empirical, Subjective and Priori Probability

There are three types of probabilities:

Empirical Probability
  • Based on observed or historical data.
Subjective Probability
  • Based on an individual’s judgement about the probability of occurrence of an event.
  • The probability of an event is determined by an individual, based on that person’s past experience, personal opinion, and/or analysis of a particular situation.
Priori Probability
  • Based on prior knowledge.
  • Involves deductive reasoning.

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Two Defining Properties of Probability

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State the Probability of an Event as Odds

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Probability Concepts

20 lessons

Lessons

1
Probability - Basic Terminology
2
Two Defining Properties of Probability
3
Empirical, Subjective and Priori Probability
4
State the Probability of an Event as Odds
5
Unconditional and Conditional Probabilities
6
Multiplication, Addition and Total Probability Rules
7
Joint Probability of Two Events
8
Probability of Atleast One of the Events Occuring
9
Dependent Vs. Independent Events in Probability
10
Joint Probability of a Number of Independent Events
11
Unconditional Probability Using Total Probability Rule
12
Expected Value of Investments
13
Calculating Variance and Standard Deviation of Stock Returns
14
Conditional Expected Values
15
Calculating Covariance and Correlation
16
Expected Value of a Portfolio
17
Variance and Standard Deviation of a Portfolio
18
Bayes’ Theorem
19
Multiplication Rule of Counting
20
Permutation and Combination Formula

Quizzes

Probablity Concepts
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