Transcript P(A and B)

Probability Concepts
Introduction to Business Statistics, 5e
Kvanli/Guynes/Pavur
(c)2000 South-Western College
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Events and Probability
• An activity for which the outcome is
uncertain is an experiment.
• An event consists of one more possible
outcomes of the experiment.
Introduction to Business Statistics, 5e
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Relative Frequency Approach
m
P(x) 
n
Introduction to Business Statistics, 5e
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Datacomp Survey
Introduction to Business Statistics, 5e
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M = a male is selected
F = a female is selected
U = the person selected is under 30
B = the person selected is between 30 and 45
O = the person selected is over 45
Marginal Probability
Marginal Probability the probability of a single
event used to define the contingency table.
P(M) = 120/200 = .6
P(U) = .5
Introduction to Business Statistics, 5e
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P(B) = .25
P(F) = 80/200 = .4
P(O) = .25
Complement of an Event
The Complement of an event A is the event
that A does not occur. 
P(A) + P() = 1
P(M) = 1 - P(M) = .4
Introduction to Business Statistics, 5e
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(c)2000 South-Western College
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Joint Probability
• The probability of the occurrence of two
events at the same time.
The probability of selecting a person who is
a female and under 30
P(F and U) = 40/200 = .2
Introduction to Business Statistics, 5e
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(c)2000 South-Western College
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Union of Events
The Union of events is the probability of
either event A or event B occurring.
The probability of selecting a person who is
Male or under 30.
P(M or U) = (120 + 40) / 200 = .8
Introduction to Business Statistics, 5e
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Conditional Probability
Whenever you are given information and
are asked to find a probability based on this
information, the result is a Conditional
probability.
P(A|B)
Introduction to Business Statistics, 5e
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Independent Events
If the P(A) = P(A|B) then event A is said to
be independent of event B.
P(M) = P(M|U) = .6
Thus event M is independent of event U.
Introduction to Business Statistics, 5e
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Mutually Exclusive Events
If an event can not occur when another event
has occurred the two events are said to be
Mutually Exclusive.
Selecting a Male and a Female are
mutually exclusive events.
Introduction to Business Statistics, 5e
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(c)2000 South-Western College
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P(M|F) = 0
Additive Probability Rules
General Additive Rule
• P(A or B) = P(A) + P(B) - P(A and B)
Special Additive Rule
• If A and B are mutually exclusive then:
P(A or B) = P(A) + P(B)
Introduction to Business Statistics, 5e
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Conditional Probability Rules
General Conditional Probability Rule
P(A|B) = P(A and B)
P(B)  0
P(B)
Special Conditional Probability Rule
If A and B are independent then:
P(A|B) = P(A) P(A and B) = P(A) P(B)
Introduction to Business Statistics, 5e
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Tree Diagrams
The probability of the event on the right
side (say, event B) of the tree is equal to the
sum of the paths; that is, all probabilities
along a path leading to event B are
multiplied, and then summed over all paths
leading to B.
Introduction to Business Statistics, 5e
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Figure 4.11
Introduction to Business Statistics, 5e
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Counting Rules
• Counting Rules determine the number of
outcomes that exist for a certain broad range
of experiments.
• Filling Slots
• Permutations
• Combinations
Introduction to Business Statistics, 5e
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(c)2000 South-Western College
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Filling Slots
• Use counting rule 1 to fill k different slots. Let:
n1 = the number of ways to filling the first slot
n2 = the number of ways to filling the second slot
after the first slot is filled

nk = the number of ways to filling the kth slot after
slots 1 though k - 1
The number of ways of filling all k slots is:
n1  n 2  n3  …  nk
Introduction to Business Statistics, 5e
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Permutations
Permutations is the counting situation in
which you select people without replacement
and where order of selection is important.
n!
 ( n)(n – 1)    (n – k 1)
n Pk 
( n – k)!
Introduction to Business Statistics, 5e
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(c)2000 South-Western College
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Combinations
Combinations is the counting situation in
which you select people without
replacement and where order of selection
is not important.
Introduction to Business Statistics, 5e
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(c)2000 South-Western College
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n!
n Ck 
k!(n – k)!