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

Major decisions in sales promotion, Major decisions in sales promotion: in...

Major decisions in sales promotion: in using sales promotion a company must establish its objectives select the tools develop the program pretest the program implement and control

Determine the efficiency of utility model, Use Newhouse (1970) nonprofit ho...

Use Newhouse (1970) nonprofit hospital's utility model to maximize U(Q, q) where Q=Quantity and q=quality with zero-profit constrain. You may assume there is an inverse demand P(Q)

Important issue in tourism and hospitality marketing, Question : Compet...

Question : Competitive tourism and hospitality organisations strive to deliver a high level of service quality to their customers. As a Marketing Manager of one of these org

Illustrate about the nature of the company, Illustrate about the Nature of ...

Illustrate about the Nature of the Company A firm having enough financial resources can afford to its own a distribution force and retail outlet, both. However most business fi

Uncontrollable variables, # what are the uncontollable variables you think ...

# what are the uncontollable variables you think may affect the segment of your camera

Differential between old and new concept of the marketing, Differential bet...

Differential between old and new concept of the marketing Basic of difference Old concept of the marketing New concept of the marketing

Illustrate the term -a world of marketing communications, A World of Market...

A World of Marketing Communications All organisations - small and large, commercial, government, charities, educational and other not-for-profit organisations - need to communi

Developing marketing stategies and plans, #questionConsider Porter''s value...

#questionConsider Porter''s value chain and the holistic marketing model what implications do they have for marketing planning?

Discuss the concept of the export processing zones, Discuss the concept of ...

Discuss the concept of the export processing zones. Export processing zones stands for EPZ : As not strictly speaking an entry-strategy, EPZs function as an “entry” with

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