Induction; principles of counting, multinomial coefficients, negative binomial distribution; maximum likelihood estimation, probability axioms; conditional probability, Bayes' rule; independence; probability mass, distribution, and moment generating functions; strong law of large numbers; conditional expectation estimators; gambler's ruin; transience and recurrence; compound processes; applications. Corequisite: One of MATH 101, 118, 136, 146, or 156. Prerequisite: One of MATH 125 or 127. Notes: (1) Credit can be obtained in at most two of STAT 181, STAT 265, or STAT 281. (2) Credit cannot be obtained in STAT 181 if credit has already been obtained in MATH 181.