Chapter

Other applications

in Probability

Published in print April 2012 | ISBN: 9780199588480
Published online September 2013 | e-ISBN: 9780191777943 | DOI: https://dx.doi.org/10.1093/actrade/9780199588480.003.0008

Series: Very Short Introductions

Other applications

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‘Other applications’ explores the applications of probability theory in less obvious fields, such as law, social science, sport, and economics. Many probability terms are used in a legal sense. Effectively understanding them requires for probabilities to be linked to the real world, and for Bayes' Rule to assess the usefulness of evidence. Anti-doping agencies use probability to assess the risk of false results in testing regimes. Football betting assigns values to teams' strengths to gauge the probability of a result, and judge their accuracy against past predictions. The value of financial investments usually follows a Gaussian distribution. However, this is not always true, and diversifying can reduce risk.

Keywords: addition law; conditional probability; distribution; law of large numbers; mean value; Poisson distribution; probability; prosecutor's fallacy; risk; standard deviation

Chapter.  3525 words. 

Subjects: Probability

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