What Random event is
A random event is an event that occurs by chance, without any known cause or pattern. Random events can be either independent, meaning that the occurrence of one event does not influence the probability of another, or dependent, meaning that the occurrence of one event does influence the probability of another.
Steps for a Random Event:
-
Define the event: Identify what event you are trying to quantify.
-
Establish a probability space: This defines a sample space that contains all possible outcomes of the event.
-
Define a probability measure: This defines the probability of each outcome in the sample space.
-
Draw a random sample: This is usually done using a random number generator.
-
Analyze the results: This involves looking at the data from the sample and determining the likelihood of each outcome.
Examples
- Simulating the outcome of a coin flip using a random number generator.
- Estimating the probability of an earthquake occurring in a given region over a period of time.
- Estimating the probability of a patient responding positively to a particular drug treatment.
- Modeling the spread of a virus in a population using a Monte Carlo simulation.
- Estimating the probability of a particular stock price movement over a period of time.