Priori Probability

Posted in Finance, Accounting and Economics Terms, Total Reads: 1092

Definition: Priori Probability

The term” A priori” is a Latin word meaning from what comes before. This implies the probability that is derived by logic without falling upon experimental facts. In other words the probability is deduced based on a logical hypothesis (from a general principle) or theory instead of calculating it from experimental data.

There are some limitations of calculation by “A Priori Probability”:

• it can only be calculated for elementary events which are independent in nature.

• it can only be applied to a finite set of events.

For example: The probability of getting a “1”, “2”,”3”,… “6” on tossing a die.

• In this case we do not construct an experiment to calculate the probability. Rather we based our logic on 2 important assumptions:

1. The die is unbiased

2. The event of getting “1”, “2,”…”6” are all independent of each other and are equally possible

Thus without even going into a formal experiment we can say that the result is 1/6


Hence, this concludes the definition of Priori Probability along with its overview.

Browse the definition and meaning of more terms similar to Priori Probability. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary

Share this Page on:
Facebook ShareTweetShare on Linkedin