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

Importance of the marketing planning:, Importance of the marketing planning...

Importance of the marketing planning: the Importance of the marketing planning is clear from the following 1.       To offset future uncertainties: future is always wrapped i

Differentiate between horizontal and vertical conflicts, Question: (a) ...

Question: (a) Members of the marketing channel perform eight key functions. Describe these functions. (b) Differentiate between horizontal conflicts and vertical conflict

Describe what is src and what are the steps to avoid src, Question 1: T...

Question 1: There is an ongoing debate between "standardization" and "adaptation" pertaining to global advertising. Critically evaluate the different sides of the arguments in

Lesson 3.5 skills practice, the equation s=p shows the relationship between...

the equation s=p shows the relationship between the amount george saves from each paycheck george saves and determines how much of a 128 dollar paycheck george save

Concept of rules and discretionary central banking policies, Question 1: ...

Question 1: (a) Clearly explain the concept of rules versus discretionary central banking policies. (b) Discuss the various risks faced by the financial system and disc

Explain the term market research, QUESTION 1 (a) Explain the term Marke...

QUESTION 1 (a) Explain the term Market research. (b) Highlight its importance and how it can be used to deal with competitors on the market. QUESTION 2 You have been

What is direct marketing, What is Direct Marketing Growing utilisation ...

What is Direct Marketing Growing utilisation of direct marketing by organisations over recent years has been significant. It signals a shift in focus from mass to personalised

What is the focus of selling concept, What is the focus of selling concept?...

What is the focus of selling concept? Selling Concept: Focus: The focus of the firm subsequent selling concept is onto pushing the products through understanding aggres

Concept of position against competition strategy, What is concept of Positi...

What is concept of Position against Competition Strategy? Position against Competition: Many more times, success for a company’s strategies comprises looking for weak po

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