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Friday, July 26, 2019

Odds vs Probability

Good thought, since I am from an engineering background, I hear probability rather than odds.

Are you mixing up odds with probability?  in TowardDataScience

Odds and probability are different, and too many people make decisions without knowing that.
Keith McNulty

In day-to-day life people use the words ‘odds’ and ‘probability’ interchangeably. They are both terms that imply an estimate of chance. I also see these terms used interchangeably in the workplace. People can say that the ‘odds are twice as high’, and they can understand that to mean ‘the probability is double’. Well, that’s wrong!

Odds and probability are related concepts but very different in scale and meaning. When mixed up in the wrong contexts this can lead to mistaken estimates of chance, which can then lead to erroneous decision making.

In this article, I want to illustrate what those differences are and how, in confusing the two, you can really affect analysis and research.

What is the difference between probability and odds?  .... "

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