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They are used to understand how to set insurance premiums.
Take, for example, car insurance.
The probability of a new driver getting in an accident is higher than an experienced driver.
The probability of a male driver getting in an accident is higher than an female driver (in general).
The probability of a person who has had many claims filing another claim is higher than someone who has never filed a claim.
All these data guide the insurance industry to charge higher premiums to drivers who are new, male or have filed claims in the past.
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How are probability and statistics related?
Probability is the theoretical basis that underpins statistics.
How is probability related to statistics?
Probability is related to statistics in a direct manner. When one is doing a research for statistics, probability has to be used especially in sampling a small region.
What is differ of mean?
Probability/ Statistics
Who is the father of probability and statistics?
Einstien
What was lengendre contribution to statistics?
Lengendre was the one who introduced the importance of probability to statistics.
