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

Management Accounting Assignment, Compare and contrast three planning tools...

Compare and contrast three planning tools used in management accounting, indicating how effective you judge each to be and why. Your judgments should be supported by evidence.

Show the advertising objectives, Q. Show the Advertising Objectives? A...

Q. Show the Advertising Objectives? Advertising Objectives: The main objective of every advertising campaign is to get favourable response from customer however the specific

International business, how international organizations contribute in inter...

how international organizations contribute in international business?

Describe what is src and what are the steps to avoid src, Question 1: T...

Question 1: There is an ongoing debate between "standardization" and "adaptation" pertaining to global advertising. Critically evaluate the different sides of the arguments in

Competitive branding strategy, Competitive branding strategy: There ar...

Competitive branding strategy: There are three branding policies and strategies: 1.       Brand policies and strategies adapted by the manufactures 2.       Brand polici

Target market, The first five years of operation target marketare people ag...

The first five years of operation target marketare people aged between (2- 67) years old. The demographic age of KualaLumpur population shows that: 0-14years:   29.6%(male4

Show the marketing implications, Problem 1: Assume that you are the man...

Problem 1: Assume that you are the manager of front-line customer-service employees in a tourism/hospitality organisation. From this perspective, elaborate on the strategies t

Video games, Should video game companies continue to alter their products t...

Should video game companies continue to alter their products to include other functions such as email?

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