A probabilistic system is one where events and occurrences cannot be predicted with precise accuracy. It is contrasted by a deterministic system in which all events can be predicted with certainty.Know More
In a probabilistic system, unlike in a deterministic system, what has just occurred is not always an accurate predictor of what will transpire next. The weather, for example, is a probabilistic system, in that future events can only be imperfectly predicted.
The theory of probabilistic systems by extension leads to probabilistic analysis and forecasting. A probabilistic system must be analyzed according to the various possible outcomes and their relative probability of occurrence.Learn more about Statistics
In probability, disjoint events are mutually exclusive, meaning that if one of the possible disjoint events occurs, the other cannot occur. For example, when a driver reaches an intersection, she may turn left or right, or go straight, but may not turn and go straight. Turning and driving straight are therefore disjoint events.Full Answer >
Variance analysis accounts for discrepancies between planned events and what actually takes place. It is generally performed at the end of each fiscal month and reported to management. Variance analysis is particularly useful in markets with consistent monthly trends.Full Answer >
An example of disjoint events is heading north and heading south. Since going north and south, which are in two opposite directions at the same time is not possible, this event is mutually exclusive or disjoint.Full Answer >
The product rule postulates on the probable simultaneous occurrence of two independent events while the sum rule indicates the probable occurrence of either one of two mutually exclusive events. Both rules use a mathematical formula to calculate the respective probabilities.Full Answer >