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

Research methodolgy and statistical anaysis, differentiate between histogra...

differentiate between histogram and histograms,correlation and regression

Discuss the significance of a customer retention strategy, Question 1: ...

Question 1: "Relationship Marketing is a new marketing paradigm which challenges the straight-jacket marketing mix approach." Evaluate this statement and illustrate with examp

Total outsourcing of cis for wv8, WV8 is a large not for profit (NFP) publi...

WV8 is a large not for profit (NFP) public sector organisation responsible for organising the operation of publicly financed schools within its region. WV8 receives its income sole

Pricing, how cost structure influence o in pricing a product/

how cost structure influence o in pricing a product/

TEST MARKETING, Explain the various approaches that are followed by FMCG CO...

Explain the various approaches that are followed by FMCG COMPANIES IN TEST MARKETING

Context and marketing communications, Context and Marketing Communications ...

Context and Marketing Communications Organisations can be seen as open social systems (Katz and Kahn, 1978) in which all components of the unit or system are interdependent an

Explain product strategy for ensuring growth of the firm, Question 1: Y...

Question 1: You have been approached by a firm of your choice. You are to provide advice on its marketing planning. Write a report that includes: a. an evaluation of its cu

Impact, does marketing help or use consumers

does marketing help or use consumers

What is budget allocation, What is Budget allocation Sales department...

What is Budget allocation Sales department receives the bulk of the marketing budget in the organisation market, and little is spent on research in comparison with the consum

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