Odds and Probability Distributions
Odds express probability as a ratio of favorable to unfavorable outcomes (f:u). While related to probability, odds represent a different way of expressing chance.
Probability distributions show all possible outcomes and their likelihoods. For example, when rolling two dice and adding their values, 7 appears most frequently because there are six different ways to roll it (1+6, 2+5, 3+4, 4+3, 5+2, 6+1).
There's an important distinction between theoretical and experimental probability. Theoretical probability is the mathematically expected value, while experimental probability comes from actual trials. The Law of Large Numbers tells us that as we perform more experiments, our experimental probability gets closer to the theoretical probability.
💡 Fascinating Fact: Casino games are designed based on probability distributions that slightly favor the house. Over thousands of plays, these small edges guarantee the casino profits!
When calculating probabilities with multiple events, we need to know whether they involve replacement. For instance, grabbing two regular sodas from a cooler with 8 regular and 5 diet sodas gives us (8/13) × (7/12) = 36% probability without replacement.