balleand said:
Ok so i was thinking this:
Since we all know that there is a certain probability that two accidents can happen simultaneously. That must mean that if I expose myself to a lot of accidents, I will increase the chances of your house burning down.
Is this logical?
If two events are independent, then no, it doesn't increase the chances of your house burning down.
However, if I am prone to setting my shoes on fire and I'm a good friend of yours, it might increase the chances, because the events are now dependent.
But talking about accidents make it difficult, because there is so much ambiguity. It's easier to talk about coins or dice until you grasp the basic concepts.
An example of flipping coins is this:
If I flip a coin twenty times, we expect that we will get roughly 10 heads and 10 tails.
However, let's say I flip the first ten coins and, miraculously, they all end up heads. It is very unlikely that the next ten will all be tails. Given the first ten flips all ending in heads, we should expect roughly 15 heads and 5 tails at the end.
The reason is that all the events are independent of each other. Flipping one coin has no bearing on flipping another. They don't affect each other. Flipping ten coins and having some unlikely thing happen doesn't make a second very unlikely thing likely all of a sudden. In the case of the unlikely, Nature forgets its debts.
On the other hand, think about how our expected outcomes evolve over time. At the start, we expect 10-10. But half way through, we expect 15-5. Why are these expectations different? The answer is that the second expectation depends on the first five flips. We call this "conditional probability". Unlike the individual coin flips, the total heads and tails depend on ALL the flips. If we have some additional information about the flips, it changes the probability.
Going back to fuzzy insurance land, if I am known to visit my friends house and I am known to like juggling fire, then the two accidents could be dependent on each other, and the conditional probability (under the "condition" that I visit you and juggle fire) increases.
But again, dealing with stories about accidents, it's not always clear when two events are independent and when they aren't.