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

Why are firms utilizing green marketing, Why are firms utilizing Green Mark...

Why are firms utilizing Green Marketing? There are five probable purposes for firms raised use of green marketing. And these are: a) Organizations observe environmental mark

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

Advantages of product branding to producers, Advantages to producers 1...

Advantages to producers 1.       Easy to advertise: when the product or producers of an enterprise are marked with a particular brand, it makes very easy for the enterprise

What is line featuring in product line, What is Line Featuring in Product L...

What is Line Featuring in Product Line? Line Featuring: In case of durable products marketers at the times choose one or several items to “feature” the concept is to attr

The future of sevices marketing, understand the prospects for growth in glo...

understand the prospects for growth in global services

What is penetration pricing strategy, What is Penetration Pricing Strategy?...

What is Penetration Pricing Strategy? Penetration Pricing Strategy: Penetration strategy comprises low prices into an order to capture a huge share of the market/right th

Case study, 1. What are the significant factors that have led to the succes...

1. What are the significant factors that have led to the success of Shoppers’ Stop? 2. Draw the typical profile(s) of Shoppers’ Stop customer segments.

Media plan, What is a media plan? A media plan is a comprehensive plan ...

What is a media plan? A media plan is a comprehensive plan of all the outside advertising and promotional activities of the business for a particular period. Generally the peri

Discuss the concepts relationship and loyalty marketing, Question 1: (a...

Question 1: (a) Critically discuss the concept "Communications Strategy". Support your answer with relevant examples. (b) Using relevant examples, explain the term "Sales

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

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