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

Describe the supply chain management system, Problem 1: Describe the su...

Problem 1: Describe the supply chain management system and inventory management system. Concept of IT in Retail Management & its application in detail Problem 2:

International Business and Emerging Markets, Evaluate the case made in the ...

Evaluate the case made in the article for ‘the third leg in the strategy “tripod”’, with particular reference to the effectiveness of the four cases offered in supporting the centr

How is information in technology structure affected, How is information in ...

How is information in technology and organizational structure affected? Conversely, information systems have enabled companies to gain many benefits as like efficiency gains, q

Effect on children in aspect of advertising, Q. Effect on Children in aspec...

Q. Effect on Children in aspect of advertising? Effect on Children: - When kids plus children watch an advertisement they are unable to assess the advantages and disadvantage

What are the advantages of using e-commerce, What are the advantages of usi...

What are the advantages of using e-commerce? Fundamental Benefits of E-Commerce are illustrated below: The major benefits are increasing sales and decreasing costs. The othe

Solve the example using costing techniques, Roux ski is a company that spec...

Roux ski is a company that specializes in the manufacture of ski pants. The senior management accountant has been asked to advise the board of directors on a production and sales p

Discuss the benefits buyers get from the use of e-commerce, Question 1: ...

Question 1: (a) Define the following terms: (i) e-commerce (ii) e- business and (iii) e-marketing (b) Discuss the benefits that: i. buyers get from the use of e-c

Importance of the new or morden concept of the marketing, Importance of t...

Importance of the New or Morden concept of the marketing: The importance of the New or Morden concept of marketing may be described as under: 1.      Helpful in produc

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