probabilistic modeling

Probabilistic modeling involves using mathematical tools to understand and make predictions about uncertain systems or events. Instead of assuming outcomes are fixed, it accounts for randomness and variability by assigning probabilities to different possibilities. This approach helps us analyze complex situations—like weather forecasting, stock market behavior, or medical diagnoses—by capturing the likelihood of various outcomes based on available data. Essentially, it provides a structured way to quantify uncertainty and make informed decisions even when outcomes are not certain.