Glossary definition: Likelihood

Likelihood: Understanding Probability & Risk

Likelihood is the probability of an event occurring, based on past events and/or current conditions. It is a measure of the probability that something will happen, or that a particular outcome will occur, based on an analysis of the available information. In other words, it is an estimation of the chances of a certain event or outcome happening. It is often expressed as a percentage or a ratio, and is based on the observed frequency of a certain event in the past, or the probability of a certain outcome based on current conditions.