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2.4 What is the Likelihood?
ОглавлениеTo answer the second question in the triplet definition of risk,“What is the likelihood of that happening?” we need to use concepts from probability theory. A brief introduction to probability theory is given in Appendix A. Essentially, the probability of an event is a number between 0 and 1 (i.e. between 0% and 100%) that expresses the likelihood that the event occurs in a specific situation, and is written as . If , we know with certainty that event occurs, whereas for , we are certain that event will not occur.