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

Show the importance of brand charter, Question 1: (a) Distinguish betw...

Question 1: (a) Distinguish between Destination Branding and Country Branding? (b) ‘The quality of a destination brand depends on the selection of the communication strate

Determine tax revenue, The US government decides to subsidize solar panels....

The US government decides to subsidize solar panels. For each unit sold, the government pays $T to the buyer. Using a graph, show how this subsidy affects i) consumer surplus, I

Marketing concept, explain the role of the process of marketing in business...

explain the role of the process of marketing in business

Describe the freeze -thaw activity, Describe the freeze -thaw activity ...

Describe the freeze -thaw activity Repeated cycles of freezing and melting of water in rock  called as freeze -thaw activity or frost action widen the cracks and may even split

Demand Forecast, How should shopper''s stop develop its demand forecasts?

How should shopper''s stop develop its demand forecasts?

State about the demand - pricing decisions, State about the Demand - pricin...

State about the Demand - pricing decisions Demand also affects the price in a big way.  When there is limited supply of a product and demand is high, people buy even if hig

Determine the role of market segmentation, Question 1: Determine the ro...

Question 1: Determine the role of market segmentation in effective marketing. Identify and briefly describe the criteria that you would use to help establish whether a variable

Decision making model in organisations, Question 1 "Negotiation is a po...

Question 1 "Negotiation is a powerful method for resolving conflict which needs skill, and experience. Negotiation will be viewed as either hard or soft. It will be a positi

Buying decision behaviour, explain Henry Assael Model of buying decision be...

explain Henry Assael Model of buying decision behaviour along with diagram

Importance of the marketing in a seller''s or buyer''s market, Importance o...

Importance of the marketing in a Seller's or Buyer's market : A seller's market is one in which the demand for goods and in the services exceeds to the supply. In such a situati

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