ABSTRACT
This chapter presents an introduction to the theory of probability and suggests that the role that probability will play in statistical inference. Software engineers are responsible for testing and evaluating computer software code. Generally, the more rigorous the evaluation, the higher the costs. Given finite budgets, software engineers usually focus on code that is believed to be the most critical. Probability also plays an important role in decision making. To illustrate, suppose you have an opportunity to invest in an oil exploration company. Past records show that for 10 out of 10 previous oil drillings, all 10 resulted in dry wells. A quality control engineer must decide whether an assembly line that produces manufactured items is “out of control”—that is, producing defective items at a higher rate than usual. The investigation of consumer product complaints by the Federal Trade Commission has generated much interest by manufacturers in the quality of their products.
