The average number of times an event occurs as a proportion of the number of times it could occur. In six throws of a die, a six could occur up to six times. On average, however, it will be thrown only once. The probability of a six in any given throw is, therefore, one in six.
All probabilities take a value from zero to one.
Probability is important in several areas of economics. In econometrics , probability theory underlies the statistical tests used to ascertain the significance of the results derived from empirical testing . There are two major ways of viewing probability. One is that it represents the random element of a process. In this view, when we ascribe a probability to something we do so given a certain level of knowledge about it.