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

Define advertising objective measuring advertising results, DAGMAR APPROACH...

DAGMAR APPROACH Definition: - Define advertising objective measuring advertising results. Hierarchy- of effective model 1) Awareness: - Making the consumer conscious

Discuss training methods available to an organisation, Question 1: (a) ...

Question 1: (a) Differentiate clearly between the terms ‘Training' and ‘Development'. (b) Discuss the following training methods available to an organisation. (i) Apprent

What is skimming pricing strategy, What is Skimming Pricing Strategy? ...

What is Skimming Pricing Strategy? Skimming Pricing Strategy: This strategy comprises selling the new product at higher price and therefore limiting oneself to the upper

Break-even analysis, Break-Even Analysis   Break-even pricing (target p...

Break-Even Analysis   Break-even pricing (target profit pricing) is  tactic to setting up price to break- even on the cost of producing and marketing products or to make the ta

Main features of market or marketing orientation, Explain the main features...

Explain the main features of organisations that do NOT adopt a market or marketing orientation. Marketing-orientated organisations have a major focus of the customers and their

Channel - management decisions, Channel - management decisions: after a co...

Channel - management decisions: after a company has chosen alternative, individual   intermediaries' must be selected trained, motivated, and evaluated. Channel arrangements must

TEST MARKETING, WHAT IS TEST MARKETING AND ITS APPROCHES FOLLOWED BY FMCG C...

WHAT IS TEST MARKETING AND ITS APPROCHES FOLLOWED BY FMCG COMPANIES

7P, what is 7P in marketing management

what is 7P in marketing management

Determine the uses of marketing communications in business, Determine the u...

Determine the uses of marketing communications in business Organisations are all well-known brand-names however there are hundreds of thousands of smaller organisations which

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