Probability
Probability is the likelihood that an event will happen. For example if a coin is flipped, there can be two possible outcomes and out of the total two possibilities, the first can be that a head will be the result or vice versa, a tail will be the result. Therefore the probability of head or tail is ˝.
The probability theory is one of the more relatively newer concepts in mathematics used widely in statistics. Probability has found application in a diverse range of areas such as economics, business, trading, and philosophy and even gambling.
In theory, the probability is represented in a range of 0 to 1, 0 denotes that an event is impossible to happen whereas 1 denotes that the event will most certainly take place. This is the general understanding; the above mentioned rule is not exhaustive. And the range between 0 and 1 represents the likelihood of an event taking place.
Probability’s current application can be found in assessing risks of taking certain actions. It is a very important tool in the speculation market and the commodity market. Many of the current market decision are based on the probabilities of certain events happening in the future.
