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

Product lifecycle, Product Lifecycle The key terms include: 1. P...

Product Lifecycle The key terms include: 1. Product Class.    At the most generic stage, this phrase refers to all products from all competing producers that serve the

Case Let 2, Ask questionThe rise of personal computers in the mid 1980s spu...

Ask questionThe rise of personal computers in the mid 1980s spurred interest in computer games. This caused a crash in home Video game market. Interest in Video games was rekindled

What is market segmentation, What is market segmentation? Market Segm...

What is market segmentation? Market Segmentation: Market segmentation is the process of dividing a total market into group of consumers who have relatively similar produc

Developing an advertising campaign for the restaurant, QUESTION 1 You h...

QUESTION 1 You have been appointed as a marketing manager for a restaurant selling ‘healthy food' in the city centre. They have asked for your advice on advertising their produ

Explain selling of product correspond to views of customers, Explain the se...

Explain the selling of a product correspond to the views of customers. In condition, the company is preparing an offering mix of products, prices and services and utilizing a c

Income statement for products, At this point, PP's bottled water business h...

At this point, PP's bottled water business has shown operating losses of nearly $300(000), which does not include the initial investment of more than $800(000). Management is now t

Requirements of a good marketing information system, Requirements of a good...

Requirements of a good marketing information system: 1.       Through there will be a several information component and activity component of a marketing information system yet

What is consumer satisfaction about the marketing, What is consumer satisfa...

What is consumer satisfaction about the marketing? Consumer satisfaction: Today’s customers face a growing range of choices in the products and services they can buy. The

Industrial market, Industrial Market All individuals or organization th...

Industrial Market All individuals or organization that produce or acquire goods or services that are incorporated into the production of other finished goods or services subseq

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