Director of FRM Operations
In terms of this CFA playlist, we are still in the early quantitative methods or the foundations of quantitative methods. In the previous video, I reviewed some basic statistical concepts and now I follow that up with a review of some basic or foundational probability concepts. We want to hit the four topics in this video starting with definitions. We want to get off on the right foot in terms of defining our concepts, including the distinction between an event and an outcome. We also want to formally define what it means to be a probability so that when we refer to a random variable, we have properly characterized that random variable with a probability or a probability distribution. We have some important definitions in conditional versus unconditional probability and also joint probability. Then I'll show you my favorite way to wrap these all together.