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

Major factors influencing buying behaviour, Major factors influencing buyin...

Major factors influencing buying behaviour: A consumer's buying behaviour is influenced by cultural, social, personal, and the psychological factors. Cultural factors exert

new product development, Disruptive innovations 1. appearance of somethi...

Disruptive innovations 1. appearance of something that did not exists before ex...(ipod, internet, telephone) 2. appearance of something that competes aggressively with existing

Affected factors of strategies human resource investment, How many factors ...

How many factors are affected of strategies human resource investment decision? There are numerous factors which considered of strategies human resource investment decision. Su

Calculate total cash interest payment, Jump Up Corporation issued five-year...

Jump Up Corporation issued five-year, 5% bonds with a face value of $800,000 on January 1, 2011.  Interest is paid annually on December 31.  The market rate of interest on this dat

Marketing in words of philip kotler, Define marketing in words of Philip Ko...

Define marketing in words of Philip Kotler. In the opinion of Philip Kotler, he explains that “Marketing is a social and managerial process by that individuals and groups acqui

Nature of the marketing, Nature of the marketing: 1.      Specialized ...

Nature of the marketing: 1.      Specialized business function: in the early days, the selling function did not call for any specialized skills as the sales could have been a

Public or transport carriers in distribution channels, Explain about the pu...

Explain about the public carriers or transport carriers in distribution channels. Public carriers or transport carriers: Transportation makes a cost centre within distrib

.marketing research, Illustrate why marketing research is important to a fi...

Illustrate why marketing research is important to a firm specially in a competitive market situation

Define the concept of integrated communication, Question 1: (a) Disting...

Question 1: (a) Distinguish between destination branding and country branding? (b) Market Research is of paramount importance prior to developing a branding and a communicat

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