ISOM 491 Session 2 28aug2015
ISOM 491 Session 2 28aug2015
Chapter 5
o Experiment, Outcome and Event
o Approaches to Probability
o The Complement Rule
o Rules of Addition
o Rules of Multiplication
o Conditional Probability & Contingency Table
o Counting Rules: Multiplication, Combination and Permutation
Chapter 6
o Random Variables
o Discrete Probability Distribution
o Binomial Probability Distribution
o Poisson Probability Distribution
Chapter 7
o Continuous Random Variable
o Uniform Probability Distribution
o Normal Probability Distribution
1-1
A Survey of Probability
Concepts
Chapter 5
o Experiment, Outcome and Event
o Approaches to Probability
o The Complement Rule
o Rules of Addition
o Rules of Multiplication
o Conditional Probability & Contingency Table
o Counting Rules: Multiplication, Combination and Permutation
LO5-1
Probability
PROBABILITY A value between zero and one,
inclusive, describing the relative possibility (chance or
likelihood) an event will occur.
1-3
LO5-1
1-4
LO5-2
1. CLASSICAL PROBABILITY
Based on the assumption that the outcomes of an experiment are
equally likely.
2. EMPIRICAL PROBABILITY
The probability of an event happening is the fraction of the time similar
events happened in the past.
3. SUBJECTIVE PROBABILITY
The likelihood (probability) of a particular event happening that is
assigned by an individual based on whatever information is available.
1-5
LO5-2
Classical Probability
Flip a coin, what are the outcomes?
Head & Tail
What is the probability of a Head?
50%
What is the probability of a Tail?
50%
1-6
LO5-2
Classical Probability
1-7
LO5-2
Empirical Probability
1-9
LO5-2
1-10
LO5-2
Summarizing Probability
1-11
Probability Rules
The Complement Rule
Special Rule of Addition
General Rule of Addition
Special Rule of Multiplication
General Rule of Multiplication
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LO5-1
1-13
LO5-1
P(A) = 1 - P(~A)
OR
P(A) + P(~A) = 1
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LO5-3
Note that the two events are not overlapping: Mutually Exclusive
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LO5-3
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LO5-3
Hint: You can solve this problem in two different ways, special rule of
addition and complement rule.
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LO5-3
1-18
LO5-3
Note that the two events are overlapping: NOT Mutually Exclusive
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LO5-3
5-21
General Rule of Addition– Example
What is the probability that a card chosen at
random from a standard deck of cards will be
either a king or a heart?
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LO5-3
1-24
LO5-4
1-25
LO5-4
1-26
LO5-4
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LO5-4
What happens on the 1st trial, changes the probabilities on the 2nd trial.
“Heart on the first trial” and “Heart on the 2 nd trial” are NOT
INDEPENDENT EVENTS. Probability of a Heart on the 2nd trial
DEPENDS on what happened on the 1st trial.
1-28
LO5-4
1-29
LO5-4
1-30
LO5-4
Conditional Probability
A conditional probability is the probability of a
particular event occurring, given that another event has
occurred.
1-31
LO5-4
1-32
LO5-4
1-33
LO5-5
Contingency Tables
150 adults are surveyed about their attendance of
movies during the last 12 months. Each respondent is classified
according to two criteria—the number of movies attended and
gender.
1-34
LO5-5
Contingency Tables
A contingency table is used to classify sample
observations according to two or more identifiable
characteristics measured.
1-35
LO5-5
1-36
LO5-5
1-37
LO5-5
P( zero movies or male) = P( zero movies) + P(male) – P(zero movies and male)
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LO5-5
1-39
LO5-5
1-40
LO5-5
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LO5-5
What is the probability that a person attended zero movies if a person is male?
This problem is asking the likelihood of attending zero movies within the male population. Or if
the person is male what is the probability of attending zero movies? So we need to look at the
data for men only. There were total of 70 men in the survey, of which 20 attended zero movies.
P( zero movies | male) = 20/70 = 0.286
What is the probability that a person is male if he/she attended zero movies?
This problem is asking the likelihood of being a male among those who attended zero movies. Or
if the person attended zero movies, how likely is it that the person is male? There were total of 60
people who attended zero movies of which 20 were male and 40 female.
P( male | zero movies ) = 20/60 = 0.333
1-42
Counting Rules
Multiplication
Combination
Permutation
1-43
LO5-7
1-44
LO5-7
1-45
LO5-7
1-46
LO5-7
1-47
LO5-7
3! = 3*2*1 = 6
4! = 4*3*2*1 = 24
2! = 2*1 = 2
1! = 1
0! = 1
1-48
LO5-7
1-49
LO5-7
1-50
LO5-7
12! 12!
12 C5 792 12 P 5 95,040
5!(12 5)! (12 5)!
Discrete
Probability
Distributions
Chapter 6
o Random Variables
o Discrete Probability Distribution
o Binomial Probability Distribution
o Poisson Probability Distribution
LO6-1
1-54
LO6-2
Random Variables
RANDOM VARIABLE A quantity resulting from an experiment that, by chance,
can assume different values.
2-55
LO6-1
1-56
LO6-1
Probability Distribution?
PROBABILITY DISTRIBUTION
1-57
LO6-1
1-58
LO6-3
1-59
LO6-3
1-60
LO6-3
1-61
LO6-3
1-62
Class Group Exercise #6
A bag contains 3 balls: 2 blue and 1 red. We
randomly pick 2 balls and observe the number of
blue balls that were picked.
Define the experiment?
What are the possible outcomes?
Define a random variable.
Is it discrete? Why or why not?
What are the possible values of the random variable?
Graph the probability distribution.
What is the mean of the random variable?
What is the variance of the random variable?
1-63
Class Group Exercise #6
1-64
LO6-4
1-65
LO6-4
1-66
LO6-4
P(X=0) = *= 0.125
P(X=1) = = 0.375
P(X=2) = = 0.375
P(X=3) = = 0.125
1-67
LO6-4
1-68
LO6-4
Success:
o
Head
o π: Probability of Success: ½
o Number of trials: n = 3
P(X=0) = = 0.125
There are Tables on the back of the
P(X=1) = = 0.375
book pages 726-731 that have the
P(X=2) = = 0.375
Binomial Probability Distribution
P(X=3) = = 0.125
values for different values of n, X and
π
1-69
LO6-4
1-70
LO6-4
1-71
LO6-4
Examples:
The number of misspelled words per page.
The number of calls per received per hour.
The number of vehicles sold per day at Applewood Auto Group.
The number of goals scored in a college soccer game.
2-73
LO6-6
1-74
LO6-6
1-75
LO6-6
Example
Mary receives 3 phone calls per hour on the average.
What is the probability that she receives 5 calls in the next hour?
P(x=5) = = 0.14
What is the probability that she receives 1 call in the next hour?
P(x=1) =
1-76
Poisson Probability Distribution
1-77
LO6-6
1-78
LO6-6
1-79
LO6-6
1-80
Continuous
Probability
Distributions
Chapter 7
o Continuous Random Variable
o Uniform Probability Distribution
o Normal Probability Distribution
Continuous Random Variable
• Height of females between the age of 20-29 years old in USA.
• It could have different values between 50~80 inches.
2-82
LO6-2
Random Variables
2-83
Continuous Random Variable:
Probability Distribution
2- 84
2-84
How do we use the Probability
Distribution of a continuous random
variable?
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LO7-1
1-86
LO7-1
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LO7-1
2-88
LO7-1
1-89
LO7-1
1-90
LO7-1
1-91
LO7-1
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LO7-1
2-93
Normal Distribution
Distribution of Height of Females between the age of 20~29 years old
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LO7-2
Characteristics of a Normal
Probability Distribution
It is bell-shaped and has a single peak at the center of the distribution.
It is symmetrical about the mean.
It is asymptotic: The curve gets closer and closer to the X-axis but never
actually touches it. To put it another way, the tails of the curve extend
indefinitely in both directions.
The location of a normal distribution is determined by the mean, . The
dispersion or spread of the distribution is determined by the standard
deviation, σ.
The arithmetic mean, median, and mode are equal.
As a probability distribution, the total area under the curve is defined to be
1.00.
Because the distribution is symmetrical about the mean, half the area under
the normal curve is to the right of the mean, and the other half to the left of it.
1-95
LO7-2
1-96
LO7-2
2-97
Standard Normal
2-98
Standard Normal: Area under
the curve
2-99
LO7-3
Areas Under the Normal Curve Using a
Standard Normal Table
(Page 732 of the text book)
1-100
How to use the Standard Normal Table?
Table is on page 732 of the book.
For finding the area under the curve where x is
between 0 and z:
o Write z as addition of 2 numbers.
Example: 1.5 = 1.5 + 0.00
1.96 = 1.9 + 0.06
3.2 = 3.2 + 0.00
2.45 = 2.4 + 0.05
o First number shows the row and second number
shows the column on the table.
o Find the area between 0 and z from the table using
the right row and columns.
1-101
Converting a Normal Distribution to
Standard Normal
What is the probability that a
female’s height is between 65 and
71 inches?
Any normal distribution can be
converted to a standard normal.
Z = (X - µ ) / σ
X=65 Z=(65-65)/3.5=0
X=71 Z=(71-65)/3.5=1.71
2-102
LO7-3
1-103
LO7-3
2-104
LO7-3
105
2-105
LO7-3
1-106
LO7-3
2-107
LO7-3
2-109
LO7-3
2-110
LO7-3
2-111
LO7-3
1-112
LO7-3
1-113
LO7-3
2-114
Homework Problems
Chapter 5
3,5,7,11,13,14,15,18,19,21,23,25,27,31,39,41,4
3,46Chapter 5
Chapter 6
1,4,6,8,9,11,15,17,19,24,31,34,36,37,38,39,41,
43,46,48,49,62,63,68
Chapter 7
1,2,3,4,8,7,9,12,13,15,16,,18,19,21,23,26
2-115