Card and Probability: Difference between pages

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imported>Doug Williamson
(Remove surplus link.)
 
imported>Doug Williamson
(Link with Confidence interval page.)
 
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1. ''Payments.''
The study of chance providing an objective measure of uncertainty.


A card that facilitates payments, for example indicating that the holder has been granted a line of credit.
Probabilities range between 1 (=100%) and 0 (=0%).


A probability of 100% means that an event is considered certain to occur.


2''Record keeping and reporting.''
A probability of 0% means that an event is considered certain not to occur.   


A physical or virtual place where records are stored, or summary results are reported.
 
For example, flipping an unbiased coin, the probability of getting a head is often modelled as 50%.
 
 
This simple model of a coin flip assumes that the only two possibilities are a head or a tail.  Applying such simple models to financial situations, and treating financial outcomes as simple coin flips, may lead to errors resulting from:
 
#The coin landing on its side 'more often than it's supposed to'.
#The underlying assumption of an unbiased coin not being valid.




== See also ==
== See also ==
* [[Charge card]]
* [[Black swan]]
* [[Corporate card]]
* [[Conditional probability]]
* [[Credit]]
* [[Confidence interval]]
* [[Credit card ]]
* [[Frequency distribution]]
* [[Debit card]]
* [[Poisson distribution]]
* [[Payments and payment systems]]
* [[Report card]]
* [[Standard cost card]]
* [[Travel and entertainment card]]
* [[Virtual card]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Technology]]

Revision as of 19:48, 23 March 2016

The study of chance providing an objective measure of uncertainty.

Probabilities range between 1 (=100%) and 0 (=0%).

A probability of 100% means that an event is considered certain to occur.

A probability of 0% means that an event is considered certain not to occur.


For example, flipping an unbiased coin, the probability of getting a head is often modelled as 50%.


This simple model of a coin flip assumes that the only two possibilities are a head or a tail. Applying such simple models to financial situations, and treating financial outcomes as simple coin flips, may lead to errors resulting from:

  1. The coin landing on its side 'more often than it's supposed to'.
  2. The underlying assumption of an unbiased coin not being valid.


See also