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 is concluded by definition of consumer behaviour, What is concluded by...

What is concluded by definition of consumer behaviour? The definition of consumer behaviour conclude that this behaviour is the study of consumer about what they buy, while the

MANAGING TECHNOLOGY AND INFORMATION, Discuss the issues associated with ...

Discuss the issues associated with a total outsourcing of CIS for WV8.

Process of the environmental analysis, Procedure of the environmental analy...

Procedure of the environmental analysis: Step 1: assess the nature of the environment: it is useful to take a view of the nature of the organization's environment in terms of

Selection of an advertising agency by rates charged, Q. Selection of an adv...

Q. Selection of an advertising agency by Rates Charged? Rates Charged :- The rates offered by the advertising agency must be quite responsible. These rates must suits the pock

Pricing policy, Pricing policy Pricing policy is a highly visible and k...

Pricing policy Pricing policy is a highly visible and key component of a company's marketing strategy and marketing plan. A company's pricing policy is the ultimate expression

What innovation would you bring to your e-commerce platform, A retail fast ...

A retail fast food chain is considering an expansion in new cities locally and internationally. Profitability has been on the increase and the board has taken the decision to inves

Assel model, Explain Henry Assael Model of buying decision behaviour along ...

Explain Henry Assael Model of buying decision behaviour along with the diagram

Explain porters generic strategies, Question 1: Apply the PESTEL Model ...

Question 1: Apply the PESTEL Model to the Financial Services Sector in Mauritius, identifying opportunities and threats. Question 2: Analyse the steps in the Strategic

#title.ms., factors affecting the product life cycle

factors affecting the product life cycle

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