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

Customer''s mental process of judging value, Customer's mental process of j...

Customer's mental process of judging value: 1.      The customer assigns weight age for each benefit; different benefits gain different weight age, depending on the priority

Test marketing, various approaches followed by FMCG companies in test marke...

various approaches followed by FMCG companies in test marketing

What are the various stages of new product development, What are the variou...

What are the various stages of new product development? Each of New Product Development’s stages involves considerable study and analysis at each stage. A management decision i

What are focus and drawback of production concept, What are focus and drawb...

What are focus and drawback of production concept? Production Concept: Focus: The focus of the firms subsequent the production concept is on lowering the cost of product

How is market participation extended, How is market participation extended?...

How is market participation extended? Market participation extenuation: Those who choose to license ought to maintain the options open for extending market participation.

Channel - management decisions, Channel - management decisions: after a co...

Channel - management decisions: after a company has chosen alternative, individual   intermediaries' must be selected trained, motivated, and evaluated. Channel arrangements must

Producer price index, Producer Price Index This is a measure of the pri...

Producer Price Index This is a measure of the prices of all goods produced in the United States. Unlike the CPI, the PPI is comprehensive and includes all goods produced exclud

Administrative law from civil law and criminal law, Question 1: How dif...

Question 1: How different is administrative law from civil law and criminal law? Explain your answer by giving examples and citing court decisions. Question 2: What are

Define nature and impact of change , Define nature and impact of change   ...

Define nature and impact of change    1.      Identify enterprise aims and objectives of the change 2.      Identify opportunities for implementation of change within team an

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