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

Evaluating a Journal Article on Marketing, assignment of 1400 words submiss...

assignment of 1400 words submission sate 2nd nov what is the price for MBA student

Assignment, A manufacture of hardware products wants enter into new markets...

A manufacture of hardware products wants enter into new markets overseas. They are initially planning to market its products and establishing sales organizations in India, Banglade

Integrated marketing process model, Problem 1: What do you meant by the...

Problem 1: What do you meant by the integrated marketing process model? Explain in brief - Detail Explanation on integrated marketing process model including the figure.

State the term- consumer goods, State the term- Consumer goods Goods...

State the term- Consumer goods Goods meant for personal consumption by households or ultimate consumers are known as consumer goods. This includes items such as toiletries,

Define the political and legal environment, Define the Political and Legal ...

Define the Political and Legal Environment. Political and Legal Environment: Political and Legal Environment Laws, pressure groups and government agencies which influence

Importance of advertising in marketing communications mix, Problem 1 Yo...

Problem 1 You are the marketing manager of a bank and you want to persuade the general manager that it is important to include advertising in your organizations marketing commu

FMCG, 1. What is test marketing? Explain the various approaches that are fo...

1. What is test marketing? Explain the various approaches that are followed by FMCG companies in test marketing.

Ask, What are the significant factors that have led to the success of Shopp...

What are the significant factors that have led to the success of Shoppers? Stop?

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