Question

What is the importance of probability in statistics?

Answer 1

i. The probability theory is very much helpful for making prediction. Estimates and predictions form an important part of research investigation. With the help of statistical methods, we make estimates for the further analysis. Thus, statistical methods are largely dependent on the theory of probability.

ii. It has also immense importance in decision making.

iii. It is concerned with the planning and controlling and with the occurrence of accidents of all kinds.

iv. It is one of the inseparable tools for all types of formal studies that involve uncertainty.

v. The concept of probability is not only applied in business and commercial lines, rather than it is also applied to all scientific investigation and everyday life.

vi. Before knowing statistical decision procedures one must have to know about the theory of probability.

vii. The characteristics of the Normal Probability. Curve is based upon the theory of probability.