What is the difference between probability and statistics?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the difference between probability and statistics?
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The problems considered by probability and statistics are inverse to each other. In probability theory we consider some underlying process which has some randomness or uncertainty modeled by random variables, and we figure out what happens. In statistics we observe something that has happened, and try to figure out what underlying process would explain those observations.
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