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

Vertical marketing system, QUESTION a) Give three reasons why price is ...

QUESTION a) Give three reasons why price is a very important element of the marketing mix b) Discuss the different situations that may lead a company to initiate price

Product development, Product Development The sixth step is product dev...

Product Development The sixth step is product development that involves developing the manufacture concept into a physical product to ensure that the product idea may be turne

Explain in details the elements of marketing mix, Question 1: (a) How ...

Question 1: (a) How does the marketing mix help to ensure that marketing effort is effective? (b) Explain in details the elements of marketing mix. Question 2: (i)

Effect on product - quality, Effect on Product-Quality: - Advertising prom...

Effect on Product-Quality: - Advertising promotes competition as well as every advertiser wants to succeed in this competition. Advertiser recognizes that for long term success in

Curves Family Envelope, A curve which touches each member of a family of cu...

A curve which touches each member of a family of curves and which is touched at each point by some member of the family is called the envelope of the family of curves. Example: Co

Market segmentation, one primary segmets and two secondary segments

one primary segmets and two secondary segments

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

What is meant by marketing research, Question: (a) What is meant by ma...

Question: (a) What is meant by marketing research? What are the main sources of data which should be included in a research brief? (b) What is consumer black box? How many

Illustrates role of publics in microenvironment of a company, Illustrates t...

Illustrates the role of publics in microenvironment of a company? Publics: Any group which has an actual or potential interest within or impact on an organization’s abil

Cost advantage of penetration pricing strategy, How is penetration pricing ...

How is penetration pricing strategy give cost advantage over innovating firm? In the case to outlook penetration pricing strategy is more commercial than financial. It is more

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