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 the objectives of public relations, What are the objectives of Pub...

What are the objectives of Public Relations? Objectives of Public relations are as illustrated below: Public relations give a service for the company by helping to provid

Importance of people and knowledge in an organization, Question: "Your ...

Question: "Your most precious possession is not your financial assets. Your most precious possession is the people you have working there, and what they carry around in their h

Hypothesis and market strategy , As this course progresses collect examples...

As this course progresses collect examples of promotional materials and advertising from various health related organizations.  You can select various media forms but be sure to in

Research methodolgy and statistical anaysis, differentiate between histogra...

differentiate between histogram and histograms,correlation and regression

Marketing, what are ten important things needed for marketing to take place...

what are ten important things needed for marketing to take place?

Discuss different decisions concerning product mix and line, Discuss in det...

Discuss in detail the different Decisions concerning product mix and product line? Product Mix: The first task of Marketing Manager is to response the question. What type

FINANCIAL MANAGEMENT, explain cash flow and funds flow with suitable exampl...

explain cash flow and funds flow with suitable example from existing corporate entity for at least three years .i.e..,2008, 2009, 2010.

What is niche marketing, What is Niche Marketing? Niche Marketing: ...

What is Niche Marketing? Niche Marketing: This Marketing is sometimes also termed as micromarketing. Marketers generally identify niche through dividing a segment within

Illustrates the social environment in marketing activities, Illustrates the...

Illustrates the Social Environment in marketing activities? Social Environment: Social Environment Living standards and quality of life Green movement: the trend occurri

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