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

Marketing audit and objectives, What is Marketing Audit, Marketing Audit is...

What is Marketing Audit, Marketing Audit is periodical assessment of marketing performance of a product. It is done with specific objectives in order to create awareness and improv

Differentiate integrated manufacturing and reengineering, What is the diffe...

What is the difference between Integrated Manufacturing and Reengineering? Integrated manufacturing: This provides a new approach for manufacturing. All the system compos

TEST MARKETING, what is test marketing?explain the various approaches that ...

what is test marketing?explain the various approaches that are followed by FMCG companies in test marketing?

Mcom, the various approaches that are followed by FMCG companies in test ma...

the various approaches that are followed by FMCG companies in test marketing

Significance of problem recognition in decision making, What is the signifi...

What is the significance of problem recognition in decision making process? Problem Recognition: As any other decision-making process, this is the first stage of the organ

Assertive confrontation message to an employee, Question (a) When deli...

Question (a) When delivering an assertive confrontation message to an employee, you have to be careful not to become defensive or reactive if the employee becomes argumentati

Competitiveadvantages, importance of Balancing Customer and Competitor Orie...

importance of Balancing Customer and Competitor Orientations

Linear systems, Rehman invests his summer earnings of $3050. He invests par...

Rehman invests his summer earnings of $3050. He invests part of his money at 8%/year, and the rest at 7.5%/year. After 1 year, these investments earn $242 in simple interest.How mu

Marketing principles, This debate requires you to show your understanding o...

This debate requires you to show your understanding of consumer behaviour in designing promotion campaigns - the topic of the week. The case in point is the promotion of socially b

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