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

Advantages of product branding to middleman, Advantages of the middleman: ...

Advantages of the middleman: 1.       Easy to understand the needs and wants to consumers: use of the brand makes it very easy for the middleman to understand the needs, want

Customer relationship management, Customer Relationship Management Cus...

Customer Relationship Management Customer relationship management (CRM) has been described narrowly as a customer database management activity. Customer relationship manage

Explain ethical aspect of advertising, Q. Explain Ethical Aspect of adverti...

Q. Explain Ethical Aspect of advertising? Ethics are ethical principles are values that govern the action of individual or group. It is a branch of social- science which assist

Explain in detail about the direct marketing, Explain in detail about the D...

Explain in detail about the Direct marketing Direct marketing seeks to target individual customers with intention of delivering personalised messages and building a relationshi

Describe how branding can benefit a tourism, Question 1: a) Explain dif...

Question 1: a) Explain different types of pricing techniques. As a consumer which method do you personally prefer to deal with? Justify your answer. b) Describe how brandi

Noncomputability, Theory of Noncomputability, Define Noncomputability W...

Theory of Noncomputability, Define Noncomputability When we want to specify the elements of a set that contains only a few elements, the most direct and obvious way is to exhau

Component of modern concept of the marketing, Component of modern concept o...

Component of modern concept of the marketing: 1.      Customer oriented: the very first and the most important base of modern concept of marketing is that it is a customer

Should video game companies continue to alter their products, Should video ...

Should video game companies continue to alter their products to include other functions, such as e-mail?

What are focus and drawback of production concept, What are focus and drawb...

What are focus and drawback of production concept? Production Concept: Focus: The focus of the firms subsequent the production concept is on lowering the cost of product

Product mix, The portfolio of products that a given organization produces f...

The portfolio of products that a given organization produces for market consumption is the product mix.

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