Conditional probability, math, Marketing Management

Assignment Help:

What is Conditional Probability?

Two events A and B are said to be dependent when B can occur only when A is known to have occurred (or vice versa). The probability attached to such an event is called the conditional probability and is denoted byP(A/B) or, in other words probability of A given that B has occurred.

If two events A and B are dependent, then the conditional probability of B given A is:

P(B/A) = P(AB)/P(A)

Proof: suppose a1 is the number of cases for the simultaneous happening of A and B out of a1 + a2 cases in which A can happen with or without happening of B.

∴ P(B/A) = a1/(a1 + a2) = (a1/n)/(a1 + a2)/n = P(AB)/P(A)

Similarly it can be shown that

P(A/B) = P[(AB)/P(B)]

The general rule of multiplication in its modified form in terms of conditional probability becomes:

P(A and B) = P(B) × P(A/B)

Or, P(A and B) = P(A) × P(B/A)

For three events A, B and C we have

P(ABC) = P(A) × P(B/A) × P(C/AB)


i.e. the probability of occurrence of A, B and C is equal to the probability of A, times of the probability of B given that A has occurred, times the probability of C given that both A and B have occurred.

Illustration: a bag contains 5 white and 3 black balls. Two balls are drawn at random one after the other without replacement. Find the probability that both balls drawn are black.

Solution: probability of drawing a black ball in the first attempt is

P(A) = 3/(5 + 3) = 3/8

Probability of drawing the second black ball given that the first ball drawn is black

P(B/A) = 2/(5 + 2) = 2/7

∴ The probability that both balls drawn are black is given by

P(AB) = P(A) × P(B/A) = 3/8 × 2/7 = 3/28  

Math Assignment Help


Related Discussions:- Conditional probability, math

Marketing management process, Steps in the marketing management process: ...

Steps in the marketing management process: 1.      Setting marketing objectives:  the process of the marketing management starts with the activity of setting objectives. Th

Who is part of this buying decision, Who is part of buying decision? W...

Who is part of buying decision? When purchasing a decision of buying goods is created by just one person in place of most organization who works within it but they can contrib

Explain the main advantage of pricing skimming strategy, Explain the main a...

Explain the main advantage of pricing skimming strategy. Pricing skimming strategy is definitely a cautious strategy that is more financial then commercial. Their main advantag

Algebra 2, the cost of renting a canoe is $20 dollars for the first 4 hours...

the cost of renting a canoe is $20 dollars for the first 4 hours and $3 per hour for additional hours. Sketch a graph of the cost of renting a canoe from 0 to 8 hours. Then write a

CHALLENGES IN MARKETING MANAGEMENT OF SMALL SCALE, WHAT ARE THE CHALLENGES ...

WHAT ARE THE CHALLENGES IN MARKETING MANAGEMENT IN SMALL SCALE RESTAURANTS AND TAKEAWAY

Explain remedy under consumer protection act, Q. Explain Remedy Under Consu...

Q. Explain Remedy Under Consumer Protection Act? Remedy Under Consumer Protection Act, 1986: A consumer record consumer association central government or state government can

Marketing information system, Marketing Information System To perform ...

Marketing Information System To perform their marketing responsibilities, marketing managers need excellent deal of information. "Information is power" is a legal statement. I

Video game, Should video game companies continue to alter their products to...

Should video game companies continue to alter their products to include other functions, such as Email ?

Marginal rate of substitution, Michael Jordan lives in a world with only tw...

Michael Jordan lives in a world with only two goods:  basketballs and Gatorade.  Basketballs cost $10 each. Gatorade costs $2 per bottle. Point A on the graph below represents Jord

Calculate total cash interest payment, Jump Up Corporation issued five-year...

Jump Up Corporation issued five-year, 5% bonds with a face value of $800,000 on January 1, 2011.  Interest is paid annually on December 31.  The market rate of interest on this dat

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd