388 Business Statistics

definitions are given and we can

Over the vears, numerous
schools of thought on probability, classify
namely:these into
thought. There are mainly four
approach.
1. The classical or a priori empirical approach,
frequency or
if erent schos
2. The relative
approach, and
3. The axiomatic
approach.
4. The pecrsonalistic
Approach
1. The Classical happens to be the earliest. This school of
priori approach thought:
The classical or a nutually exclusive and equally likely.
the possible out mes of an experiment
equally
are
probable, and mutually The words"ealthoe
exclusively means if one 2s umes
likely" convey the notion of classicists believe that each outcome of an. event oc Urs
other event will not
occur, ie., the
and, therefore, can be assigned the same weight experiment has the say
chance of appearing as any
For
other
example, when we toss a ccoin the probability of head is equal
e to (probability ir
Occurrence as any other.
1/2. Similarly, each
card drawn random from well-shuffled the
deck profobabiplaj n
of a tail and is equal to or 1/52, the probability of drawing a
to be drawn i.e., l in 52 heart wout
cards has the same chance black card 36/52-1/2, etc. Th
a Thus the classical
13/52=14, the probability of drawing favourable to concept defe
theeite
follows: If there are 'a' possible outcomes
event asoutcomes unfavourable to the occurrence of E, and all these possibleooutcone
the probability
an event 'b'anpossible
E, and of
will occr d
are equally likely and mutually exclusive, then the probability that the event E
P(E), is
of event E
Number of outcomes favourable to the occurrence
P(E) = - Total number of outcomes
a+b
as in allother methods, the probability
of an even
method of measurement as well
In the a priori sum of the probability that an event will
occur and te
that 0 < P(E) S 1, and the
is a number such one.
probability that it will not occur is equal to
approach has two interesting characteristics: first, the subjects referred to as fair cois
The classical
abstractions in the sense that no real world object exactly possesses t
fair deck of cards, true dice are or there is a loaded die, the classical approach of asSim
is unbalanced
features postulated. If a coin confusion. Secondly. in order to determine probabilines
offer us nothing but
equal probability would cards shuffled, nor dice rolled, i.e., no expe
the above examples, no coins had to be tossed, no
based entirely uponlogicalpi
data were required to be collected. The probability
calculations were
(thus, a priori) reasoning.
2. Relative Frequency Approach encou
ofchance,itinadeyut
games
While the classical theory is useful for solving problems which involve For example, itis withint
serious difficulties in analysing a wide range of other types of problems. aged45willdieduringt
ag
for answering questions such as: What are the probabilities that (a) a manparticular
product
next year, (b) a consumer in a certain metropolitan area will purchase a ea defective item.exc
next month, (c) aproduction process used by aparticular firm will produce
Completeand mutually poss
In none of these situations, it is feasible to establish a set of are
onlytwo
thathe
there likelihood
in (a)
outcomes each of which is equally likely to occur. For example, will live. The of
question
or he
occurrences, the individual will die during the ensuing year smaller? type
This is the
die is of course, much smaller than he will live. How much
requires reference to empirical data.
 relative
frequency
theoreticians
experiments
agree that the
For example,only valid Probability 389
he
anthilities
ethrough repetitiveThe
heads? relative when a coin isprocedure determining
for
turn
in will
up
coin falls heads. frequency theorist would tossed, what is the
toss the coin andprobability
event
of times
ortion ratio
our
Suppose he tosses theactually
20/50 is used as the estimate of coin 50 calculate
the times and it falls
S
hen
the
if the coin is
perfect, one
obtainthe true probability from
mav not get
exactly probability
25
of heads
heads out of tosses. In
of this coin. It head
may be
A A l eto
repeated
(probability)experiments.
would approach the true ratio other
if the coin words, it is
otimae 85 heads (or as However.
the number of trails were perfect.
t s ssed200times, ve may have
furthertoss
the coin 2.000
|15 tails).
times, we may have 980
The relative
frequencyincreased. Thus, if the
980 2000 0.49, and so on. Since the heads (or 1020 becomes 85/ 200
f yeing probabilityis of an event is determined tails): the relative
cmpiricallobservations,
c theerelative
etitive
einition of probability. frequency theory also called the objective orobjectively
h
of the number of occurrences of an event to the
empirical
The ratio number of possible
as the relative frequency. Two
Nmentis referred to
given: definitions of
probability in
occurrences
terms of
in an
fnzuency can be relative
experiment is performed ntimes under the
lf an an event, then
aSn.(a)favouring sameof that
an estimate of the probability conditions
event and
is thethere
ratio are
a/n.'a'
outcomes,
() The estimate of probability of event, aln approaches a limit, the true
shen napproaches intinity is
given by probability of the event.
P(E)=Limit
lt may be noted that we can never obtain the
ntice, we can only try to have a close estimate ofprobability
of an event as given by the above limit. In
P (E) based on large n. However., this approach does
emphasise that probability involves a long-run concept.
. The Axiomatic Approach*
The classical approach restricts the
calculation of
nclusively events. The resolution of non-mutually probability essentially equally likely and mutually
to
exclusive events of
sbevents and the introduction of 'equal likelihood' among events reality
into mutually exclusive
which
questions not clearly treated by the classicists. On the other hand, the are essentially not so in reality
proach requires that every question of probabilistic empirical or relative frequency
the mathematician under identical conditions, and thatnature be examined experimentally in the laboratory
too over a very long period of time, through
process of repeated observations. if estimates of the chances of
Cnsideration are required. occurrence of the events under
The axiomatic theory
argely free from the probability is an honest attempt at constructing a theory of probability,
tndition. inadequacies
tis true that ofboth the classical and empiricall approaches, in the true mathematical
the
mplex
bu real-world situation introduction
too
of advanced logicthrough mathematical abstractionsrenders the
idealised (or too simplified) to be of any immediate practical utility.
acabinonelitytheles
to the
it plays an
important role in rendering areasonable amount of comprehensibility and
th O' any understinquiry
hem less scientific andinginto their structure and composition, where other approaches have at best
of myriad chance phenomena observed in nature, at least inthe initial

"to details. comprehensible

and less tractable. Thus, the primary purpose of the development of an
see
Probability Theory by M, Loeve Van Nostrand.
 391

Tabulation Method
within brackets. For example, the set
are usually enclosed consisting of the possible
clements
H) ofsingle
s toss of a coin may be expressed as:
[he T. Head - S= (T, H}
possibleoutcomes of
tossing two coins may be written as:
stof S = (T, T), (T, H), (H, T), (H, H)}
JN
whichthe elements of a set
are listed is of no importance. It is
important,
Note that in the second example there are four elements inhowever,
that
onderin once. the
Ie belisted only set, viz..
Atelement
and (H, H).
intH) (H,T)
Defining Property Method
aseor to have al brief and exact way to describe sets without listing elements. For
Sometimesit iss helpful
university students may be expressed as:
ihesetoffall
ample, S= {x/x is a student in the university}
of allIx such that xis a student in the university."
like Weread this
as Sis the set

Untversalset
rsalset Uis defined as that set consisting of allthe elements under consideration. Thus if
Tes of eet and Uis the universal set, then every element in A must be in U(since it consists of elements
Sam: nder consideration).
Null Set
bl Aset having no element at all is called a null or an empty set. The symbol used to denote it is a
under Grek leter d (Phi).
Subset
lfevery element of a set A is also an element of a set B, then Ais called a subset of B. For example,
or the tSider the set A= (3, 5) and the set B = (1, 2, 3, 4, 5). We note that every element in the set A is also
bjes
zdenent of the set B. The set Ais said to be the subset of B. Symbolically, we write this as AcB read
$Ais contained in B orAis a subset of B.
elong
mUSs Equal Sets
does
nent THO Sets Aand Bare said to be equal if and only if every element of Ais also an element of Band
t Versa Symbolically, A = B if and ony if AcBand BCA.
ed to
OperatWe shallionsnow consider certain operations on sets that will result inthe formation of new sets.
Intersection of Sets
The intersection of two sets Aand Bis the set of elements that are common to both Aand B.
Symbolical y, the
biagram, the intersection of 4 and B is written as An B= fxlxe A and x e B}. In the
following
shaded area corresponds to the intersection of sets A and B. U is the universal set.
INTERSECTION OF SETS AAND B

AnB
 Ilustration 1. Consider the sets of numbers
U- (riis positive integer)
A(1. 2. 3, 4, 5. 6. 7, 8.9, 10)
B- (8.9, 10, 11, 12, 13. 14)
Then AB- (8.9, 10)
B
Since only these clements appear in both And

Disjoint sets
Two sets Aand Bare called disjoint if they do not intersect. This
where ois a null set. When the two sets do nottintersect, they are said to becan be
These sets are shown below in the diagram.
DISJOINT SETS
disioint expotrewmietta
A

Illustration 2.Consider the sets of numbers :

U= (1, 2, 3, 4, 5, 6, 7. 8,9, 10)
A={1,2, 3)
B=(5. 6})
Note that Aand B do not intersect. This can be expressed as An B= .

Union of sets
The union of twO sets A and B is the set of elements that belong either to Aor Ror ket
expressed as AUB = {x/xeA or xE B}. The union of twO sets sometimes is exnressa
logical sum of the two sets. In the following diagram, the area representing the elements f
AUB has been shaded. UNION OF SETS AAND 8
Illustration 3. Consider the set of numbers :
U= (x/x is a positive integer)
A= (1,3. 5)
B= (3.4, 5, 6}
Then Au B= {1, 3, 4, 5, 6)
Since these elements appear in either Aor B or both.
AUB
Complement of a Set
IfA is a subset
all elements of the
of Uthat universal
are not in A orset
theU,complement
then the complement of Awith
of set Ais the set of respect to thB
all elements
belong to Aand is denoted by A' or A. In symbols, A'= [x/xeU and xA]. Suppose al/ti
a
the employees of a firm as the universal set. Let all the smokers form asubset. Then
smokers
smokers also form asubset which is called the complement of the set constitutings
following diagram, the area representing the complement of A has been shaded.

A
SMOKERS

SONS SMOKERS
 that is, AnA'= . Hence Aand A'
do not intersect
Probablity 393
harnteristicof this case is that AUA' U. Thus Aand A'are alsoare mutually exhaustive.
completely exclusive.
(1. 2. 3. 4)
(4l1.
4
le 2. 31
rstin
4(4}
Sete
Two
O
e
difterence ssets
of A and B is defined as 4-B= (x/xeA and x¢B). This is
shown below as
DIFFERENCE OF SET A AND B

IMestrations A={1,3,5, 7,9, 11, 13)

B= (5,9, 13, 17}
A- B=(1, 3, 7, 11}
Tefollowing!illustration will explain the use of different set operations :
ion 6. Afim has 231 employees classified by age and job category as follows:
Age Category
Category A, 4, Total

s 20 21-25 26-30 31-35 >3

Peons 20 20 10 5 70
Clerks 3 6 2 1
Draftsfen 30 35 20 10 10
Salesmen 2 23
Junior Executives 2 8
Executives 2 2
Total 39 62 70 1 19 231
Based on dhe above table, explain in words the following sets and give the number of employees in each set:
() Byu B,
(g A4
(h) (Au A)n B
(0) (B B4) n A_

Slation.-(a) B, As gives us the intersection

between peons and age greater than 35, i.e.,those peons who are more than
g rom the table this gives us the
b) value 5. Hence B As = 5.
Similarl'y, A B,means the intersection between the age group 221-25 and that of executives, i.e.,the executives who are
lo 21-25. From the table this value is 0. Hence An B 0.
Similarly, Bn As =2
4
AB
or both, gives the union between age less than 20 and executives, i.e., either in the category of age lessthan 20 and
s
therefore.
)
Similarly, AU As =AU BA39 +
70+ 19= 5=44.
VISimil arly, SBau B = 1S + 110 89.= 125.
BmeansAnBnot contained
hA gives us thein As,ie., all those except the set Acontaining 41 employees. Hence A4 =231- 41 = 190.
Similarly.Bu B4) A=
union of A, and A, firstt then its intersection with B, i.e., (A, UA2) n B, = 15 + 30 =45.
10+2 =12.
 ofnumberof.ahiects is a selection of these objects, considered without regard to
tmbination,
numberof eombinations of a set of n objects taken r at a time (r s n), usuallv
total
The
Tand dis
givenby
n!
"C, = r!(n-r)!
denotedbythe following symbols.
((). C,. C,., C".
manager has seven field representatives working under him. A local consulting fim at a fee of
etration.Asales
seminar on sales to which the sales manager would like to send all the seven of his
athrec-day
is conducting budget will allow him to send only three men. How many different ways are there for him to
Hovever.his
ties. men2
thre
nnpofnumber of possiblee combinations of three men selected from aset of seven men is
a ths
7.6.5.4!
=35.
4!3 4!3.2.1
ornote that in a pemmutation, order counts; in a combination, order does not count.
mportant to
lestration
Sete:l is 10Out of 5 mathematicians and 77statisticians, a committee consisting of2 mathematicians and 3statisticians
fomiIn how many ways can this be done if (a) any mathematician and any statistician can be included (b) one
must be on the commite, (c) particular mathematician cannot be the committee?
statistician
Ar
mathematicians out of 5 can be selected in C, ways.
letion. (a) 2 selected
ttatisticians out of 7 can be 'C, ways.
Tsi number of possible selection = C, x 'C, = 10 x 35 =350
mathematicians out of 5 can be selected in C, ways.
1additional statisticians out of 6can be selected in "C, wavs.
Tal number cof possible selections =C, x"C, = 10 x IS = 150.
in2mathematicians out of 4can be selected in "C, ways.
jsuatisticians out of 7can be selected in'C, ways.
Toal number of possible selecions =C, x'C, =3 x35= 105.
Random Experiment
Arandom experiment is a well-defined process of observing a given chance phenomena through a
xris of trials (finite infinite) each of which leads to a single outcome.
Observation of chance phenomena is called random experiment so as to distinguish them from
aqerinents under control conditions, for example in a physical laboratory.
Erents
AiO event isa possible outcome of an experiment or a result of a trial or an
observation.
Eementary Events
mentary event or a simple event is a
Nhich cannot be further subdivided into a single possibleofoutcome of an experiment. It is thus an
combination other events.
Compound Events
When two 0 or more
saledla coompound event.
events 0ccur in connection with each other, then their simultaneous occurrence
tually Exclusive EventsThe compound event is an aggregate of simple events.
Wo
even1SotherSare said to be mutually
exclusive when both cannot happen simultaneously in asingle
words, the nappening one prevents the happening of the other and vice versa. For
of
 example, ifa single coin is tossed either head can be up or tail can be
time. Similarly, a person may be either alive or dead at acertain up,
both
time, he cannot
dead at the same time.
can otbehe
Collectively Exhaustive Events
In the example of fair coin tossing. there are two possible
outcomes: head and
outcomes is collectively exhaustive since the result of any toss must be
bhNe
exhaustive events are those which include all possible outcomes. The
one for mutually exclusive and collectively exhaustive events. sum of the or 1aeither head
Complementary Events
Let A be an event of the number of favourable cases in
complementary event of Ais the number of nonfavourable cases in the
the experiment, then
and A are mutually exclusive and collectively exhaustive.
Equally likely Events
experiment.Clearly
Events are said to be equally likely when one does notoccur more
if an unbiased coin or die is thrown, each face may be expected to be often thannthe
number of times in the long run. Similarly, the cards of a
pack
observed
of playing cards are
we expect each card to appear equally often when alarge number off so approxiothmeatrs.eFiory te
Random number tables are based on this concept. draws are made with closely ae
PROBABILITY LAWS
There are several laws that can ease our task of
discuss two of the fundamental laws of computing computingviz.,probabilities. In this section.e
probabilities, Addition law and Multiplicztre s
Addition Law
The probability of occurrence of either event Aor
event B of two mutually exclusive (or ds
sets) events is equal to the sum of their individual
probabilities. Symbolically, we may write,
P (AU B) = P (A) + P (B)
DISJOINT EVENTS

A B

ofBagrezs
Since Aand Bcan be written as a event
A, hence, the result follows. union of simple events in which no simple
Vcanbestan'
Iftwo events A and Bare not
follows: mutually exclusive (joint events) tthen the addition law can
prokabiF
The probability of the occurrence of the pevents
to both
both is equalthat
either event
event A occurs, plus the probability that event B occursA or event Bor
Symbolically, it can be written as minus the probablliy

P[AUB]= P[A]+ P[B] - P[An B]

 Probability 397
n( AUB)
P[AUB] n(U)
number of elements belonging to 4uB, and
indicatesthe n(U) is the total number of
universalset U

JOINT EVENTS
AnB

n(A) +n(B) n(An B) (By adding n(4) and n(B), we count twice
P(Aub)= (4n B). See diagram above.]
n(U)
nA), n(B) n(Ar B)
n(U) n(U) n(U)
= P(A)+ P (B)- P(An B).
lImstration 11.City residents were surveyed recently to determine readership ofnewspapers available. s0% of the residents
atemring paper, 60% read the evening paper, and 20% read both newspapers. Find the probability that aresident selected
s$ cthe the morming or evening paper or both the papers.
Slution. Let Aand Brepresent the events that the resident read morming and evening paper respectively.
Then P (A) = 0.50; P (B) = 0.60; and P (An B) = 0.20
TIe probability that the resident reads either the morning or evening or both the papers is given by:
P(AUB) = P(A) + P(B) - P(An B)
0.50 + 0.60 -0.20= 0.90.

Generalisation
aodition law for mutually exclusive events can be extended to cover any number of events. In
ticular, if A, Band Care
Ie events will occur is three mutually exclusive events, then the probability that any one of
given by
athe P(AUBUC)= P(A) + P(B) +P(C)
events are not mutually exclusive, then the formula becomes
P(AUBUC) = P (A) + P (B) +P (C)
-P (An B) P(B oC)-P(AnC)+ P(AnBn)
AnB AnBoC

Bc|
AnC
 Conditional Probability
When we are dealing with probabilitics of a subset rather
is focused on the probability of an event in a subset of the than of
the events defined on the subsets are called conditional whole set the
of A, given is equal to the probability of AB divided by w hole
probabilities. prTheobablit es se,as my
probability of Bis not zero. Symbolically, we may write thistheas
pr0. obability condit onal
of B, tr
P(An B)
P(A/B) = P(B) P(B)
P(An B)-; P(A) # 0.
.Droviet
Similarly P(BIA) P(A)
Illustration12. Astudy showed that 65 per cent of managers had
cnginecring education. Furthermore, 20 per cent of the managers had some business
What is the probability that a manager has some some business
business education. given that he has
educatibuton noand enginng
education 5
pt cem t
Solution. Let Adenote the event that the manager has some
business cducation and some engintheeriat heng
education.
Then P (A) = 0.65, P (B) =0.50, P (Ao B) = 0,45
B denote
cducatiea goth
has some

B
Therefore P(An B) 045 \0.65
P (A/B) = = 0.9 0.50
P(B) 0.50
Hence the required probability that a manager has
some business education given that he
has o45
Multiplication Law engineering cducation sl:
The multiplication law may be stated as follows :
The probability of the joint occurrence of event A and event B is equal to the conditi
probability of A given B, times the probability of B.
Symbolically, we write
P (An B) = P (AlB) x P(B)
or
P (BO ) = P (BIA) x P (A)
Proof.

P (A/B) = n(An B)_n(A n B)/n(U)_ P(A nB)

n(B) n(B)ln (U) P(B)
P (An B) = P(A/B). P (B).
Generalisation. The multiplication law can be extended for more than two events.
three events A, B and C which are not mutually exclusive then the
P(An Bn C)= P(A). P(BIA) . P formula becomes
(CIA n B)
For n events 4,, A,....... A, the formula becomes
P
(A,nA,n4,n...nA) =P (A,) P (AJ4,) P (4/A, n A, ..)
P(A,/4, nA,0...i,
non-occunene
Dependent Events. Two events are said to be
one event in any trial affects the dependent if the Thus, in the caseof derent
0ccurrence or

events, the probability of any eventprobability of other events in other trials. non-occurrea
is conditional, or depends upon the occurrence or rBaredepente
other events. From definitions of
events, conditional probabilities, we can see that ifA and
P (An B) = P(AIB) P(B)
or P (BOA) = P(BIA) P(A)
 Probability 399
nos significanceinthe intersection of two events, since AnB= BoA.Therefore. we
i
eorders
of propertyoffintersection, viz.,
=P(AB) P(B)
P(B/A). P(A)
B Events, Two events are
be independent, if the
said to
Independent
probability of the occurrence of
probability of the occurrence of the second event.
I not aftect
the
are
Independent events are
in no way affected by the occurrence of any other event
Whose
probabilities preceding,
e same time.
roccurringat the
ANCVentS

are saidi to be independent if and only if

f and B
P(AO B) = P(A) PB)
that
trom () and (ii),
bichimplies P(A/B) = P(A)
P(BIA) = P (B)
candidatei s selected for interview of management trainees for 3companies. For the first company there
Jlastration 13. A
theesecond there are 15 candidates and for the third there are 10 candidates. What are the chances of his
cadidates,for company?
of the
ioh at least at one that the candidate gets the job at least al one company = probability that the candidates does
soletion. The probability
tE the job in any company. company
bhility that the candidate does not get the job in the first
= |--12 12
Probability that the candidate does not get lhe job in the second company
I_14
1S 15
Probability that the candidate does not get the job in the third company
9
10 10

Since the events are independent, therefore, the probability that the candidate does not get any job in any of the
hre companies
1| 14 9 231
= 0.77
12 15 10 300
Hence the required probability = 1- 0.77 = 0.23.
Bayes' Theorem
Sassociated with the name of Thomas Bayes (1702-1761) and is a theorem on probability,
tay have d with a method of estimating the probabilities of the causes by which an observed event
been produced. This theorem may be stated as follows
Let B,, B,,... B,, be n mutually exclusive events whose union is the universe, and let Abe
Marbitrary event in the universe, such that P(A) +0. Given that P(A/B), and P(B) ((= 1,...., n)
known.
P(B,/A) = P(A/B,) P(B) forj = 1, .. n.
/ P(B,) P(A/ B,)
This equation is callled the formula for the probability of Causes', since it enables one to find
be nobability
is of a particular B,, or *Cause' by which the event A may have been brought about. It
meimes written in another form as follows:
P(B,/ A) = P(An B,) + P(A P(AnB,)
B,)+ +P(An B,)
 400 Business Statistics

as a mechanism for
The Bayes' theorem is frequently used The initial revising the
process. and revised
after observing information about a
prior and posterior probabilities
Illustration 14, In a post oflice. three
respectively.
clerks are assigned to
third.
process incoming
probabil
nrobabilies e retr
mail, The
art
processes 35 per cent and the clerk, B,.
40 percent, the second clerk, B,. sccond has an error rate of 0.06
and the processes
third
25
ner
clerk has an error rate of 0.04. the
error. The Post Master has an err0r cent of the m
at random from a dav's output is
found to have an wishes to know the rate of 9 01
third clerk, respectively.
processed by the first, second, or
Solution. Let Adenote the event that a mail
containing an crror is selected at
processed by the first, second and third clerk
respectively. Using our usual random and nrobabil ty hth
notation, we B,B, toand B
mail was want
probabilities :
have
P(B,|4). P(B,]4). P(B,l4) compyste he m
From the information given, we
P(B,)) = 0.40, P (B,) = 0.35 and P(B,) = 0.25.
probabilities, which can be obtained without additional information are
t
These
We are also given the information that the conditional probabilities observing arecord with called prior probabiltig,
:
was processed by one of the three clerks are
P(A/B,) =0.04, P(AIB,) =0.06 and P(A/B,) = 0.03.
From these probabilities, we can calculate joint probabilities:
P(An B,) = P(AIB,) P (8,) = 0.04 x 0.40 = 0.016
P(AO B,) = P(AlB,) P (B,) = 0.06 x 0.35 =0.021
P(An B,) = P(AIB,) P (B,) = 0.03 x0.25 =0.0075
Use Bayes' formula to obtain the desired probabilities.
P(An B)
P(B,/4)= P(An B)+ P(An B,) +P(An By)
0.016 0.016
0.36
(0.016+ 0.02|+0.0075) 0.0445

P(An B,) 0021

= 047.
Similarly, P(B,/A) = 0.0445 00445

P(An B,) 00075 = 017.

P (B,/A) = 0.0445 00445
These probabilities are called posterior probabilities because they were calculated after it was known thau te
was one containing an error.
MISCELLANEOUS ILLUSTRATIONS
Illustration 15. The probability that a contractor will get a plumbing contract is 2/3 and the proban
he willnot get an electric contract is 5/9. If the probability of getting at least one contract is 4/5, what is the pru
that he will get both? resoectici
contract
Solution. Let Aand B denote the event that the contractor will get a plumbing and electric
4
Therefore PA)=P(B)
3 =|-9 9 P(AU B)=:5
Hence P(An B) = P(4) + P(B) - P(AU B)
24 4-031.
3 9 S 45
The required probability that the contractor will get both the contracts is given by 0.51 Theprobzbilin
is0.60. traine
Illustration 16. The probability that amanagement trainee will remain with acompany emply
agement
an employee carns more than Rs. 50.000 per month is 0.50. The employeeis a mana thatan
probability that an probabil1ty
remained with the company or who earns more than Rs. 50,000 per month is 0.70. What is the company?
earns more than Rs. 50,000 per month, given that he is a management trainee who :stayed with the
Solution. Let A= An employee who earns more than Rs. 50,000 per month.
B= A managemen trainee who stayed with the company.