Probability: Prof. Neha Taneja
Probability: Prof. Neha Taneja
PROBABILITY
PROBABILITY TERMINOLOGY
Random Experiment
The
Random Variation
Variation among experimental outcomes caused by
uncontrolled factors.
PROBABILITY TERMINOLOGY
Sample Space
Set of all possible outcomes of Random Experiment
Condition-No
Event
One or more possible outcomes of an experiment
PROBABILITY TERMINOLOGY
PROBABILITY TERMINOLOGY
Independent Event:
Occurrence of one event does not affect and is not affected
by occurrence of other.
Student(B/G), Speaks English, Ahmedabad
Dependent Event:
Occurrence of one event does has some impact on the
occurrence of other.
Speaks English/NRI
PROBABILITY
Possibility
Odds of occurrence of uncertain event
0-1
RULES OF PROBABILITY
0 P(Ai) 1
P(A)=1-P(A)
COUNTING RULES-No. of
OUTCOMES
Multistep Experiments
No.
Combination
n
r
Permutation
n
r
n!
( n r )! r!
n!
( n r )!
PROBABILITY
1.
2.
Jack drawer contains 10 blue socks and 12 grey socks. The room
is dark and he cannot turn on the light. At the maximum, how
many socks he is required to take out just to ensure that he has a
pair of the same colour?
3.
PROBABILITY
If the Macau Lottery system uses random selection of six
4.
1/10,737,573
Out of 10 pieces, 3 are defective. In how many ways selection of
5.
6.
63
In a game of dice you need to get exactly 5 to win. You have two
options, either to roll both dice or one. What will you opt for?
PROBABILITY
Classical Approach
Subjective Approach
Classical Approach
Subjective Approach
Assumption:
Assumption:
Assumption:
Based on :
Based on:
Based on:
Rules
P ( A) lt n
A priori Classical Probability
Approach
Limitation
c( s)
n
Belief/Experience
PROBABILITY
Relative Frequency
Probability
Subjective
Probability
Classical
Probability
Relative Frequency/Subjective
Probability
dream
Subjective
TYPES OF PROBABILITY
Marginal Probability
Probability
of single event
Joint Probability
Probability
succession
Conditional Probability
Probability
RULES OF PROBABILITY
Rules of Addition
At least one of the two events occur
Mutually
Exclusive Events
P(A U B)
= P(A) + P(B)
P(A U B U C) = P(A)+P(B)+P(C )
Joint
Events
P(A U B)
P(A U B U C ) =?
P(A B C )=?
RULES OF PROBABILITY
7.
6 or
more
Proportion of
families
.05
.10
.30
.25
.15
.10
.05
What is the probability that the family chosen at random will have 4 or
more children
Ans:0.3
8.
M/30
M/32
F/45
F/20
M/40
RULES OF PROBABILITY
RULES OF MULTIPLICATION
Both the events occur
INDEPENDENT EVENTS
Marginal
Probability
Joint
Probability
P(AB)=P(A B)=P(A)*P(B)
Conditional
Probability
P(AB)=P(A)
P(B A)=P(B)
RULES OF PROBABILITY
RULES OF MULTIPLICATION
Both the events occur
DEPENDENT EVENTS
Conditional
Probability
P(AB)=P(A B)/P(B)
P(BA)=P(A B)/P(A)
Joint Probability
P(AB)=P(A B)=P(A)*P(B A)
= P(B)*P(A B)
Marginal Probability
Sum of probabilities of Joint event in which simple event occurs
RULES OF PROBABILITY
CONCLUSION CHART
RULES OF PROBABILITY
9.
If P(A U B)=7/8
If P(A B)=1/4
P(A)=5/8
Obtain P(A B)
Ans:
10.
1/8
RULES OF PROBABILITY
11.
160
12.
0.8
RULES OF PROBABILITY
13.
14.
Consumer
Mutually Exclusive
RULES OF PROBABILITY
Marketing Manager has installed four billboards on the
highway to promote the new restaurant in the town. From the
past experience he has estimated the individual probability
of people viewing the billboards as 0.75,0.82,0.87 and 0.9
respectively for the four billboards. Assuming that the event
of noticing a particular bill board is independent of whether
he notices the other bill boards or not. What is the
probability that:
All billboards will be noticed by randomly chosen person?
The 1st and 4th but not the 2nd and 3rd billboards will be noticed?
Exactly one billboards will be noticed?
None of the billboards will be noticed?
3rd and 4th billboards wont be noticed?
15.
Ans:0.481545,0.015795,0.013595,0.000585,0.013
RULES OF PROBABILITY
16.
17.
.
.
.
.
According the investment consultant odds against the price of any stock
going up during the next week is 2:1 and odds in favor of the price
remaining the same are 1:3.What is the probability that the prize of the
stock will go down during the next.
Ans: 5/12
MBA
Non MBA
Promoted
0.14
0.26
0.4
Not promoted
0.21
0.39
0.6
Total
0.35
0.65
1.00
RULES OF PROBABILITY
Probability that the family owns two cars if their monthly income is more
than Rs. 35000 is 0.75. Of the households surveyed, 60% had income
over Rs. 35000 and 52% had two cars. What is the probability that :
Family has two cars and income over Rs. 35000.
Family income is more than Rs. 35000 provided they own 2 cars
18.
19.
Ans:0.585,0.78
Joint probability
BAYES THEOREM
p ( B ) p ( B Ai ) p ( Ai )
i 1
p( B Ai ) p( A)
p ( Ai B)
p ( Ai B )
k
p( B)
p( B Ai ) p( Ai )
i 1
BAYES THEOREM
20.
21.
BAYES THEOREM
22.
A test for a rare illness is 92% reliable i.e. in 92% of the cases test
will give positive results if person is really ill. When administered
on a person who is not ill, test will still give positive result 4% of
the times. If it is known that only 0.1% of the population is affected
by this disease, what is the probability that randomly selected
person who tests positive for the disease actually is suffering from
it?
Ans:0.0225
23. A bank credit manager uses three ways to encourage the collection of
delinquent accounts. From the past records , he learnt that 70% of the
accounts are called personally,20% are phoned and 10% are send a letter.
The probability of positive response from the three methods is 0.75,0.6
and 0.65 respectively. If the credit manager has just receive the payment.
What is the probability that the account was:
a)
Called on personally
b)
Send a letter
c)
Made a phone call
Ans: 0.74,0.169,0.0915
BAYES THEOREM
24.
BAYES THEOREM
25.
BAYES THEOREM
If a machine is correctly set up, it will produce 90%
acceptable products. If incorrectly set up it will produce
40% acceptable products. Experience shows that 80% of
the set ups are correctly done.
a) If after certain set up, out of the first two items produced,
first is found to be acceptable and second unacceptable,
find the probability that machine is correctly set up.
b) If after certain set up, machine produces two acceptable
items as first two pieces, find the probability that machine
is correctly set up.
Ans: 0.6,0.953
26.
BAYES THEOREM
27.
Hit
Moderate
success
Flop
7 or higher
0.6
0.3
0.15
4-6
0.3
0.45
0.35
3 or lower
0.1
0.25
0.5
Ans:0.5217,0.3627
PROBABILITY
28.
29.
If you speak truth 70% of the times and your friend speaks
the truth 80% of the times. In what percentage of cases are
you likely to contradict each other while giving the same
statement.
Ans: 38% or 44%
30.
If P(A)=1/2
P(B)=1/3
P(AB)=1/4
Find: P(AB), P(A U B), P(AB), P(AUB)
Ans: 1/12, 3/4, 5/12, 11/12