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Insurance & Risk Management
3. Chapter 2 Appendix: Basic Statistics and the Law of Large Numbers/Probability and Statistics
3. Chapter 2 Appendix: Basic Statistics and the Law of Large Numbers Illustration
Syllabus Slides

Probability and Statistics

01.Core Concepts

The probability of an event is the long-run relative frequency of the event, given an infinite number of trials with no changes in the underlying conditions. Probabilities can be summarized through a probability distribution Distributions may be discrete or continuous A probability distribution is characterized by: A mean, or measure of central tendency A variance, or measure of dispersion