 Page 568: Insurance Rates

 Probability theory  Chance or likelihood of an event happening  Probability  Each even is assigned a number between 0 and 1.  Impossible Event – 0% chance  Certain Event – 100% chance

 Number of trials  Outcomes  Frequency  Relative frequency (fraction or percent)

 Example

Complete investigation 2 p.571with a partner. Record data. You have ten minutes. Ready, set, go.

Complete #1, 3, 5, 6, 10 of investigation 3 p.572 with a partner. Record data. You have ten minutes. Ready, set, go.

 A sample space U is the set of all possible outcomes of an experiment. It is also referred to as the universal set U.  Ways to represent sample spaces: › Lists, tables of outcomes, 2D grids, Venn diagrams, tree diagrams.

 Mathematical or theoretical probability is based on what we theoretically expect to happen. Duh.

 In general, for an event A containing equally likely possible results, the probability of A occurring is  An ordinary 6-sided die is rolled once. Determine the chance of not getting a 1 or 2.

 Two events are complementary if exactly one of the events must occur. If A is an event, then A’ is the complementary event of A, or “not A”.