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

What are processes for selecting target markets, What are processes for sel...

What are processes for selecting target Markets? Market Targeting: Once the form has known its market segment opportunities, this has to evaluate different segments and a

Examine the umbrella and portfolio approaches to branding, Question 1: ...

Question 1: Critically examine the importance of product design, New Product Development (NPD) and explain the reasons for failures in NPD and how would you overcome them?

Explain about the technology and organizational structure, Explain about th...

Explain about the Technology and Organizational Structure. Technology and Organizational Structure: Technology affects the Human Resource Structure as within the given wa

Explain about the sales promotion, Explain about the Sales Promotion S...

Explain about the Sales Promotion Sales promotion comprises numerous marketing techniques which are often used tactically to provide added value to an offering, with aim of ac

7ps, i have to write on people for my real estate company.

i have to write on people for my real estate company.

Functions, discuss the four functions of marketing management analysis, pla...

discuss the four functions of marketing management analysis, planning, implementation and control

Features of marketing information system, Features of Marketing Information...

Features of Marketing Information System: 1.  Data are regularly collected. They are contionously updated as environmental conditions change. 2. The data are converted into

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

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

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

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