Lecture 1: Basic Probability


Summary

The video delves into the world of finance, Warren Buffet's influence, and the uncertainties in financial markets. It explores the crucial role of probability in quantifying uncertainty, tracing back to a French gambler's question to Blaise Pascal. The discussion covers randomness, random experiments, and sample spaces in probability theory, as well as Kolmogorov's Axioms for probability, emphasizing the significance of sample space and Sigma-algebra. Additionally, it explains the concept of a probability space, events, and the mapping of events to probabilities within a probability space.


Finance and Uncertainties

Discussion on the interest in finance, Warren Buffet, uncertainties in the financial market, and the role of probability in quantifying uncertainty.

French Gambler and Probability Theory

Story of a French gambler posing a probability question to Blaise Pascal, leading to the discussion on randomness and probability theory.

Random Experiment and Sample Space

Explanation of randomness, random experiments, and sample spaces in probability theory.

Kolmogorov's Axioms for Probability

Explanation and discussion of Kolmogorov's Axioms for probability, including the importance of sample space and Sigma-algebra.

Probability Space and Events

Definition and understanding of probability space, events, and the mapping of events to probabilities within a probability space.

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