Date of this Version
Cornhusker Economics, July 29, 1998, agecon.unl.edu/cornhuskereconomics
A probability is a number that measures the likelihood or chance that a particular event will occur. This number, in terms of fractions or percentages, must be between zero (0) and one (1). Zero means there is no chance that the event will happen, and one means it is certain to happen. In between are all the possible probabilities that it will or will not happen. The sum of the probabilities of all the possible events that can occur in a given situation must add up to one.