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

Boolean algebra, Boolean algebra differs from normal algebra in three diffe...

Boolean algebra differs from normal algebra in three different ways: The values are of a logical and not of a numerical character. The operations applicable to those values. The pr

Developing an advertising campaign for the restaurant, QUESTION 1 You h...

QUESTION 1 You have been appointed as a marketing manager for a restaurant selling ‘healthy food' in the city centre. They have asked for your advice on advertising their produ

Ghost shopper, Ghost Shopper Ghost shopper is a marketing expert, posin...

Ghost Shopper Ghost shopper is a marketing expert, posing as a regular consumer, who is hired to monitor and evaluate the presentation skills and salesmanship of the store's sa

What is personal selling, What is Personal Selling Personal selling is...

What is Personal Selling Personal selling is traditionally perceived as an interpersonal communication tool which involves face-to-face activities undertaken by individuals, f

Determine the elements of the marketing mix, Determine the elements of the ...

Determine the elements of the marketing mix Promotion is hence one of the elements of the marketing mix and is responsible for communication of the marketing offer to the targe

Product life cycle, considering the concept of product life cycle, where wo...

considering the concept of product life cycle, where would you put video games in their life cycle

Define nature of personal selling, Define the nature of personal selling wi...

Define the nature of personal selling within significant points. Nature of personal selling: There are different types of sales jobs utilize to sell the product of the

Market segmentation, Q.   Explain market segmentation?  Tell need to segme...

Q.   Explain market segmentation?  Tell need to segment the markets? O R Clarify th e term market segmentation & briefly explain the need to segment the market? A

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