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LOR14: Sigma-algebras and probability spaces

LOR14: Sigma-algebras and probability spaces

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In this episode, we answer the question we left hanging at the end of Episode 13: What is a sigma-algebra?
We will explore the properties of a sigma-algebra and explain why we want our event space to be one. Next, we will discuss probability spaces in a simple yet rigorous way, which will set the stage for understanding random variables and the mathematical treatment of risk measures.
Finally, we will discover why it can be inconvenient to swim naked.
Are you ready to wear a swimsuit?


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