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

Pricing strategy:, Should pricing reflect the cost of making the product, b...

Should pricing reflect the cost of making the product, by an economic value approach, or should prices reflect the perceived value of the product

Trignometry, 2(cosx+cos2x)+sin2x(1+cos2x)=2sinx

2(cosx+cos2x)+sin2x(1+cos2x)=2sinx

Advertisement and society marketing, What significant points are covered in...

What significant points are covered in the Advertisement and Society Marketing? Advertisement and Society: Several points which are covered in the Advertisement and Socie

Illustrate the main roles of communication, Illustrate the main roles of co...

Illustrate the main roles of communication At a fundamental level, communication can assume one of four main roles: 1.  It can inform and make potential customers aware of a

shipping and purchasing the product, Ordering Stock for ProductPusher ...

Ordering Stock for ProductPusher An important part of your duties as manager is to determine how much of each product to order for ProductPusher's monthly stock inventory.  Yo

Psychographics and demographics of customer in research, How are the psycho...

How are the psychographics and demographics of customer identified in marketing research? Marketing research tries to reveal the number of persons who buy why they buy, when th

Factors affecting media planning, Factors affecting media Planning:- (1...

Factors affecting media Planning:- (1) Nature of Product: Product to be advertised is able to be industrial/technical product or consumer product: Industrial/Technical produc

What are the several types of promotional schemes, What are the several typ...

What are the several types of promotional schemes? Different types of promotional schemes are distributed within the following manner as given here: a) Consumer-promotion to

Nature of the marketing, Nature of the marketing: 1.      Specialized ...

Nature of the marketing: 1.      Specialized business function: in the early days, the selling function did not call for any specialized skills as the sales could have been 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