## What is meant by Probability analysis?

The term "probability theory" refers to a branch of mathematics that deals with the analysis of random events and their likelihood. Various mathematical models and methods are used to calculate and analyze the probability of events occurring. Probability theory is applied in numerous fields such as statistics, finance, insurance, engineering, and more.

Typical software functions in the area of "probability theory":

- Stochastic Modeling: Creation and analysis of stochastic models for predicting random events.
- Simulation: Conducting Monte Carlo simulations and other numerical methods to estimate probabilities.
- Data Analysis: Analyzing historical data to estimate probability distributions.
- Risk Analysis: Assessing and quantifying risks based on probability models.
- Visualization: Graphical representation of probability distributions and simulation results.
- Statistical Tests: Conducting hypothesis tests and other statistical procedures to validate probability models.
- Optimization: Using optimization techniques to maximize or minimize expected outcomes based on probabilities.
- Integration: Connecting with other software modules to use probability calculations in complex models and systems.

Examples of "probability theory":

- Financial Market Risk Modeling: Calculating the probability of market risks such as price losses or gains.
- Actuarial Science: Estimating the probability of claims to set insurance premiums.
- Quality Control: Determining the likelihood of product defects and their impact on overall quality.
- Logistics and Supply Chain Management: Predicting the probability of delivery delays and their effects on the supply chain.
- Engineering: Analyzing the probability of system failures and their impact on the reliability of technical systems.
- Market Analysis: Calculating the probability of success or failure of new product launches based on market data.