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

Image and voice of nursing, Purpose: The purpose of this paper is for the ...

Purpose: The purpose of this paper is for the student to reflect on the historical and current image and voice of nursing and the profession of nursing are affected. The student w

Marketing mix., number of channel levels of panasonic

number of channel levels of panasonic

Explain about business marketing, Explain about Business Marketing. Whe...

Explain about Business Marketing. When customer is the focus of all activities marketer has not to search customer to seek response to his products. Customer group is decided f

Effect of past-advertisement, Q. Effect of past-advertisement? Methods ...

Q. Effect of past-advertisement? Methods of evaluation advertisement effectiveness assumes that response of customers in test-area is the outcome of advertisement done in test

Give a review on pricing policies for pricing of services, Question 1: ...

Question 1: Teamwork as a concept has grown over the last 20 years, especially in the service industry. Thus, teamwork success is not automatic. Teams have to be established fo

Explain about the decline stage of product life cycle, Explain about the de...

Explain about the decline stage of product life cycle. Decline Stage: A stage when sales demonstrate a downfall producer decides to abandon the market except only enough.

How does green marketing lead to innovation, Question: (a) List and di...

Question: (a) List and discuss with examples the four factors that influence consumer purchase decision. (b) To what extent ‘branding' is important for a product and ho

determine amount of safety stock for company, Forester's Country Markets i...

Forester's Country Markets is a well-known grocery chain based in a large Midwestern city.  At one of Forester's distribution warehouses a key problem has been proper stocking of s

Message - source of advertisement, Q. Message - Source of advertisement? ...

Q. Message - Source of advertisement? Message-Source:- Person who converse the message of advertiser to the target audience. Also known as brand-ambassador instance sport

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