Probability plays an important role in analyzing insurance policies to determine which plans are best for you or your family and what deductible amounts you need. For example, when choosing a car insurance policy, you use probability to determine how likely it is that you'll need to file a claim.
The probability theory is very much helpful for making prediction. Estimates and predictions form an important part of research investigation. With the help of statistical methods, we make estimates for the further analysis. Thus, statistical methods are largely dependent on the theory of probability.
Here is an example:
Probability = the number of ways of achieving success. the total number of possible outcomes. For example, the probability of flipping a coin and it being heads is ½, because there is 1 way of getting a head and the total number of possible outcomes is 2 (a head or tail). We write P(heads) = ½ .
