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WHAT WE ARE TO LEARN - 1

Stochastic Processes SECTION A
CME720 1 Course Introduction
2. Set Theory and Venn Diagrams
3. Unions, Intersections, Compliments, etc.
4. Probability Theory
• Probability Space and Probability Measure
• Axioms of Probability
• Conditional Probability
• Independence of Events (mutually exclusive events)
• Partition- Law of total probability
• Bayes' Rule
SECTION B
1 Definition and Characterization of One Random Variable
• Probability Distribution Function (cdf) and their properties
• Probability Density Function (pdf) and their properties
• Probability Mass Function (pmf) and their properties
2. Conditional distributions and densities
3. Important Random Variables (Discrete and Continuous)
• Discrete – Binomial, Bernouli, Poisson, Hypergeometric, …
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•2Continuous - Uniform, Exponential, Gaussian, Rayleigh, Nakagami

WHAT WE ARE TO LEARN - 2

SECTION C
1. Statistical Properties of one Random Variable Let’s Begin
• Expected value (mean value)
• Mean Square Value
• Time Average
• Statistical Average versus Time Average Set Theorem and Venn
• Variance Diagram
2. Transformation of a Random Variable (cdf and pdf)
3. Calculating probabilities through cdf and pdf

Probability is too important to be left to the

mathematician”
END OF THE COURSE
- Unknown Engineer

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Set Theory -1
Definition:
A set is a collection of distinct objects called
elements Usually written as a list of elements
enclosed in brace { }
Since elements must be distinct, 2 or more
elements in a set cannot be the same
Example 1:
{1,2,3} is a valid set whereas {1,1,3} is not
Set can be made up of elements which are
themselves sets
Set can be finite or infinite
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Set Theory -3
Example 3:
If A = {1,2,4}, and B = {1,3,5}, then AB = {1,2,3,4,5},
NB: Only one occurrence of an element in a set is allowed
Definition:
The intersection of two sets A and B (denoted as
A  B) is a set that contains only the elements that
appear in both sets
For more than two elements
Example 4:
If A = {1, 2, 4}, and B = {1, 3, 5}, then A B = {1},
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Set Theory -2
Example 2:
The set of all positive integers {0,1,2,3, …} is
countably infinite, whereas the set of all real
number [0,1] is uncountably infinite
All sets are subsets of the sample space
Definition:
The union of two sets A and B (denoted as A B) is
a set that contains all elements in either A or B
For more than two elements
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Set Theory - 4
Definition:
 A set A is a subset of a set B (denoted as A B) if all the
elements of the set A are also in the set B.
Example 5:
Set A = {1, 2} is a subset of set B = {1, 2, 3, 5}
 In general, if S contains n elements, then there are 2n subsets
Complement of a Set.
 Sometimes it is easier to describe a set by describing what is
not in the set. This leads to the concept of complement.
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Set Theory -5 Set Theory - 6

Definition: Definition:
The complement of a set is the set of all elements in the  The sets A and B are said to be mutually
universal set that are not in the set. exclusive (or disjoint) if they have no elements in
common; i.e., A  B = 
Example 6:  Definition:
If  ={1, 2, 3, 4, 5}, the complement of the set B = {1, 2, 3}, The sets A and B are said to be mutually exhaustive if they
is the set Bc = {4, 5} contain all the elements of the universe; i.e.,
 Notice that  c =  and  c =  A B = 
 With above definitions, we can describe complex
collection of objects
 Some relationships with set are important enough
to have special names
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Set Theory -7 Venn Diagrams -1

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Venn Diagrams -2 Venn Diagrams - 3

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Venn Diagrams - 4 Venn Diagrams - 5

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Venn Diagrams - 6 Venn Diagrams - 7

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Venn Diagrams - 8 Venn Diagrams – Example 1

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Venn Diagrams – Solution to Example 1

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Probability Theory - 1 Probability Theory - 2

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Some Applications - 1 Some Applications - 2

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Some Applications - 3 Some Applications - 4

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Some Applications - 5 Some Applications - 6

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Probability Concepts

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Probability Spaces Probability Spaces

A function is a special type of relation in which each element of

the domain is paired with exactly one element in the range . A
mapping shows how the elements are paired. Its like a flow chart
for a function, showing the input and output values. A mapping
diagram consists of two parallel columns.

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4 Mapping diagram 34

Probability – Example on Sample Spaces - 1 Probability – Example on Sample Spaces - 2

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Event - 1 Event – Example 1

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Definition of Probability

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Axioms of Probability -1 Axioms of Probability -2

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Axioms of Probability -3 Axioms of Probability -4

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Axioms of Probability -5 Axioms of Probability -6

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Class Work Class Work - Solution

Prove, Using the axioms of probability and law s of set theory, that
Ѕ S  A  A

 
A  A  

P A  1 P  A fr o m (iii)
P A  A  P ( A )  P ( A )

P A  A  P (S )
P (S )  P ( A )  P ( A )
fr o m (ii)
P (S )  1
th e r e fo r e ,1  P ( A )  P ( A )
hence
P ( A )  1  P ( A )
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Thanks you for your Time

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