Intuition - Judgement based on intuition; a combination
of rational statistics , personal observations, and superstition.
Easily biased by non-rational use of data.
Classic Theory - Calculation of the ratio of favourable
to total outcomes. Does not involve experiment. Computed by counting
NE events of of N total possible events, where all outcomes
are equally likely.
All outcomes must be equally likely.
Cannot handle an infinite number of possible outcomes.
Frequency of Ocurrence - Perform an experiment n times,
testing for the occurence of event E.
We must estimate from a finite number of trials.
We postulate that nE/n approaches a limit as n goes to infinity.
Axiomatic Theory - Define a random experiment H (with
nondeterministic outcomes), a sample description space (the set of all outcomes), and an
event (a subset of the sample
description space which satisfies certain constraints).
Consider the following definitions of axiomatic theory: