Students' understanding of probability concepts have been investigated from various different perspectives. This study was set out to investigate perceived understanding of probability concepts of forty-four students from the STAT131 Understanding Uncertainty and Variation course at the University of Wollongong, NSW. Rasch measurement which is based on a probabilistic model was used to identify concepts that students find easy, moderate and difficult to understand. Data were captured from the e-learning Moodle platform where students provided their responses through an on-line quiz. As illustrated in the Rasch map, 96% of the students could understand about sample space, simple events, mutually exclusive events and tree diagram while 67% of the students found concepts of conditional and independent events rather easy to understand.