Académique Documents
Professionnel Documents
Culture Documents
Introduction to Probability
Dr Shekhar Rajagopalan
Chap 1-1
MBA ZC417 Q UAN TI TA TIV E M ETHODS 1 BITS-Pilani
More Terminology
Conditional Probability
P(A | B) Read as Probability of A given B
P(A | B) = P(A and B) / P(B) = P(A B) / P(B)
Independent Events
P(A | B) = P(A) or P(A B) = P(A) * P(B)
Multiplicative Law
P(A and B) = P(B) * P(A | B) or P(A B) = P(B)P(A|B)
Joint Probability
Probability of two events both occurring
Marginal Probability
Related to the Joint Probability Table
MBA ZC417 Q UAN TI TA TIV E M ETHODS 2 BITS-Pilani
P 180 Ex 11
Students taking GMAT were asked about their UG degree and Intent to pursue their
MBA as a full-time or Part-Time student. A summary of their response follows:
UG Degree
Type Business Engineering Other Total
FT 352 197 251 800
PT 150 161 194 505
Total 502 358 194 505
30. Suppose P(A) = 0.5 and P(B) = 0.6 and P(A and B) = 0.4.
1. Draw the Venn Diagram.
2. Compute P(A | B).
3. Compute P(B | A).
4. Are A and B independent?
31. Suppose A and B are mutually exclusive. And P(A) = 0.3 and P(B) = 0.4.
1. Compute P(A and B).
2. Compute P(A | B).
3. Explain why Mutually Exclusive and Independence are not the same
concepts.
4. What would you conclude about these two concepts.
Mutually exclusive event is known to occur, the other cannot occur.; thus,
the probability of the other event occurring is reduced to zero (and they
are therefore dependent).
Two events that are not mutually exclusive, might or might not be
independent.
MBA ZC417 Q UAN TI TA TIV E M ETHODS 6 BITS-Pilani