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

Brand building process, Brand building process: Having understood the...

Brand building process: Having understood the basis of the brand equity, let us now turn to the brand building process. As we saw earlier, brands are built over a period of t

Explain with examples the meaning of shadow branding, Question: (a) Ex...

Question: (a) Explain with examples the meaning of shadow branding? (b) What is the difference between umbrella branding and portfolio branding? (c) List the six market

Nike., pros, cons and risk associated with core marketing strategies of nik...

pros, cons and risk associated with core marketing strategies of nike

Explain the various stages of the product cycle, Question 1: Explain th...

Question 1: Explain the various stages of the product cycle and explain why it is necessary to follow the procedures regarding this cycle. Question 2: (i) Explain the

What is the primary activates, What is the primary activates? Primary ...

What is the primary activates? Primary Activities: These activities are those activities which are involved within the physical creation of the marketing, product and af

Describe the components of the promotion mix, Question 1: "Promotion p...

Question 1: "Promotion performs a significant and vital role in the marketing strategy of an organization." Using an organization of your choice, describe the component

Explain innate and acquired needs, Question: (a) "Consumers have both i...

Question: (a) "Consumers have both innate and acquired needs." With reference to examples you are familiar with, differentiate between these two types of needs. (b) "Tho

Define one disadvantage of online buyers, Define one disadvantage of online...

Define one disadvantage of online buyers when dealing with unfamiliar sellers. One disadvantage of online buyers: Lack of trust is there observably as buyer cannot phy

What is demographic segmentation, What is Demographic Segmentation? D...

What is Demographic Segmentation? Demographic Segmentation: This characteristic as like age, sex, income, marital status, occupation as well as education are most frequen

Marketing planning, Marketing planning: Through strategic planning, ...

Marketing planning: Through strategic planning, the company decides what it wants to do with each business unit. Marketing planning involves deciding on planning marketing s

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