The mathematical doctrine of chances, or Theory of Probabilities, considers what deviation from the average chance by itself can possibly occasion in some number of instances smaller than is required for a fair average.
CHAPTER XVIII.
THE CALCULATION OF CHANCES.
In order to calculate chances, we must know that of several events one, and no more, must happen, and also not know, or have any reason to suspect, which of them that one will be. Thus, with the simple knowledge that the issue must be one of a certain number of possibilities, we may conclude that one supposition is most probable to us. For this purpose it is not necessary that specific experience or reason should have also proved the occurrence of each of the several events to be, as a fact, equally frequent. For, the probability of an event is not a quality of the event (since every event is in itself certain), but is merely a name for the degree of ground we have, with our present evidence, for expecting it. Thus, if we know that a box contains red, white, and black balls, though we do not know in what proportions they are mingled, we have numerically appreciable grounds for considering the probability to be two to one against any one colour. Our judgment may indeed be said in this case to rest on the experience we have of the laws governing the frequency of occurrence of the different cases; but such experience is universal and axiomatic, and not specific experience about a particular event. Except, however, in games of chance, the purpose of which requires ignorance, such specific experience can generally be, and should be gained. And a slight improvement in the data profits more than the most elaborate application of the calculus of probabilities to the bare original data, e.g. to such data, when we are calculating the credibility of a witness, as the proportion, even if it could be verified, between the number of true and of erroneous statements a man, quâ man, may be supposed to make during his life. Before applying the Doctrine of Chance, therefore, we should lay a foundation for an evaluation of the chances by gaining positive knowledge of the facts. Hence, though not a necessary, yet a most usual condition for calculating the probability of a fact is, that we should possess a specific knowledge of the proportion which the cases in which facts of the particular sort occur bear to the cases in which they do not occur.
Inferences drawn correctly according to the Doctrine of Chances depend ultimately on causation. This is clearest, when, as sometimes, the probability of an event is deduced from the frequency of the occurrence of the causes. When its probability is calculated by merely counting and comparing the number of cases in which it has occurred with those in which it has not, the law, being arrived at by the Method of Agreement, is only empirical. But even when, as indeed generally, the numerical data are obtained in the latter way (since usually we can judge of the frequency of the causes only through the medium of the empirical law, which is based on the frequency of the effects), still then, too, the inference really depends on causation alone. Thus, an actuary infers from his tables that, of any hundred living persons under like conditions, five will reach a given age, not simply because that proportion have reached it in times past, but because that fact shows the existence there of a particular proportion between the causes which shorten and the causes which prolong life to the given extent.