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How to Use a Probability Chart

Probability charts help people visualize the likelihood of an event happening so they can react accordingly. Risk managers such as gamblers and finance officers can customize probability charts to suit their particular needs. The X-axis of probability charts shows the likelihood of occurrence ranging from zero percent, or impossible, at the origin to 100 percent, or absolute certainty, at the far right. Users can customize the probability chart by changing what is represented on the Y-axis. Learning how to use a probability chart can improve your ability to manage risk.

Instructions

    • 1

      Locate the spot for the occurrence you want to determine the probability of along the Y-axis. For example, if you are using a craps probability chart to look up the likelihood of rolling a five then read along the Y-axis for the label that says "five."

    • 2

      Follow along the line perpendicular to the Y-axis until you find the marker indicating the position of that particular occurrence. For example, if you look out from five on the Y-axis, you continue moving right until you hit a marked point.

    • 3

      Look directly beneath the point to find the X value for that occurrence. For example, if you hit the point that marks the probability of rolling a five in craps and look directly down, you would find that point is at the X value 4/36, or 1/9.

    • 4

      Record the X value as the likelihood of that event occurring.

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