Business and Personal Finance Dictionary

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• PROBABILITY MEASURE
  
  A measure (q.v.) that maps a set of points in a probability space into a point in the interval [0,1]. Example: If the probability space corresponding to two flips of a fair coin is W = {HH, HT, TH, TT}, and we have the set of all outcomes with tails once out of two flips, A = {HT, TH}, then the probability of that outcome is P(A) = 1/2 and P(.) is the probability measure that assigns a probability of 1/4 to each of the points in the probability space.
  
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