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

High quality costs down and revenue up, 2JN is a large manufacturing organi...

2JN is a large manufacturing organisation which is structured with a number of supervisors each responsible for their own work production unit. Supervisors report to a team of seni

Financial plan, The financial plan consists of a 12-month profit and loss p...

The financial plan consists of a 12-month profit and loss projection, a four-year profit and loss projection (optional), a projected balance sheet, a cash flow projection and a bre

Marketing, Does marketing exisit solely to increase profit?

Does marketing exisit solely to increase profit?

Characteristics of marketing planning, Characteristic of Marketing Planning...

Characteristic of Marketing Planning: 1. marketing planning is a formal and syatematic approach towards planning of all marketing activites product positioning price setting di

Pricing strategies , detail note on pricing strategies of any product

detail note on pricing strategies of any product

What is insurance in functions of marketing, What is insurance in functions...

What is insurance in functions facilitating exchange in marketing? Insurance: A large number of risks are comprised in exchange of goods and services. It helps to cover s

Full market coverage, Full market coverage: here a firm concentrates on se...

Full market coverage: here a firm concentrates on serving many needs of a particular customer group. Only very large firms can undertake a full market coverage strategy. Examples

Marketing Management, Marketing Management, Marketing ManagementDoes market...

Marketing Management, Marketing ManagementDoes marketing exist solely to increase profit? If this is the case, then marketing in nonprofit organizations can be said to be useless.

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

Market segmentation and targeting, You are needed to complete the following...

You are needed to complete the following piece of work: 'Bodyproud Fitness' is a relatively new health and fitness company based in Huddersfield. The company was produced in res

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