I have been reading the book "Introduction To Statistics, A Customised Edition of Statistics For Business and Economics" by P. Newbold et al.
As I understand their statement of classical probability:
...Classical probability is the propertion of times that an event will occur assuming that all outcomes in are sample space a equally likely to occur...
So as I understand it, we assume each outcome is equally likely, so for, say a die roll my sample space, the set of all possible outcomes of a random experiment, is {1, 2, 3, 4, 5, 6}.
Ie.
$$ P(A)=\frac{number\ of\ outcomes\ relevant\ to\ event\ A}{total\ number\ of\ outcomes} = \frac{N_A}{N} $$
My first question had been:
- Is it correct to say that we have to assume each outcome is equally likely?
My thinking had been this: So if I want the probability I roll a 6, for example, the number of relevant outputs is len({6}) = 1 and the total number of outcomes is len({1,2,3,4,5,6}) = 6, so I would say P(6) is 1/6.
But what if my dice is unfair. How can I represent this in classical probability? The number of outcomes remain the same... what tools does classic probability have to allow for this? Or is this where relative frequency probability is required?
The reason I was asking is that I couldn't see how we could, using classical probability, model a biased dice for example. I think now that it can't and that to model events of unequal probability we need relative frequency probability.
All I was asking for was confirmation that my thinking on this was correct. It seems there has been quite dome disagreement on it, but above is a verbatim quote from the book.
So... given this, the book also makes the following definitions:
Sample Space = The set of all possible basic outcomes from a random experiment.
Population = The complete set of items or "events" of interest. Size is very large, denoted N, possibly infinite.
So my next question had been,
- Is the "sample space" in this case (for classical probability) also the population? .
Still not sure if sample space is the same as population: I have understood "sample space" as "the set of all possible basic outcomes from a random experiment." I have understood population as "the complete set of items or "events" of interest"... so surely all possible results of an experiment must be the complete set of items of interest, so the two terms are equivalent? This seems wrong to me, but I don't have a grasp as to why?
In fact even in relative frequency probability, how do these two terms really differ.