Probability Sessions 2 and 3
Probability Sessions 2 and 3
Sessions 2 and 3
Event A
Event B
Sample
Space S
Event A
Event B
Intersection of A and B
Sample
Space S
Addition Law
The addition law provides a way to compute the
probability of event A, or B, or both A and B occurring.
The law is written as:
P(A B) = P(A) + P(B) P(A B
There is no need to
include P(A B
Conditional Probability
The probability of an event given that another event
has occurred is called a conditional probability.
The conditional probability of A given B is denoted
by P(A|B).
A conditional probability is computed as follows :
P( A B)
P( A| B)
P(B)
Multiplication Law
The multiplication law provides a way to compute the
probability of the intersection of two events.
The law is written as:
P(A B) = P(B)P(A|B)
Independent Events
If
If the
the probability
probability of
of event
event A
A is
is not
not changed
changed by
by the
the
existence
existence of
of event
event B,
B, we
we would
would say
say that
that events
events A
A
and
and B
B are
are independent.
independent.
Two
Two events
events A
A and
and B
B are
are independent
independent if:
if:
P(A|B)
P(A|B) =
= P(A)
P(A)
or
P(B|A)
P(B|A) =
= P(B)
P(B)
Multiplication Law
for Independent Events
The multiplication law also can be used as a test to see
if two events are independent.
The
The law
law is
is written
written as:
as:
P(A B) = P(A)P(B)
Some Concepts
Marginal Probability The unconditional probability of one event
occurring; the probability of a single/simple event.
Joint Probability The probability of two or more events occurring
together
Conditional Probability- The probability of one event occurring
given that another event has occurred.
Note : For Marginal Probability and Joint Probability, the
base/denominator is the sample space whereas for Conditional
Probability the base/denominator is the event which has occurred.
Bayes Theorem
Often we begin probability analysis with initial or
prior probabilities.
Then, from a sample, special report, or a product
test we obtain some additional information.
Given this information, we calculate revised or
posterior probabilities.
Bayes theorem provides the means for revising the
prior probabilities.
Prior
Prior
Probabilities
Probabilities
New
New
Information
Information
Application
Application
of
of Bayes
Bayes
Theorem
Theorem
Posterior
Posterior
Probabilities
Probabilities
Bayes Theorem
To find the posterior probability that event Ai will
occur given that event B has occurred, we apply
Bayes theorem.
P( Ai )P(B| Ai )
P( Ai | B)
P(A1)P(B| A1) P( A2 )P(B| A2 ) ... P(An )P(B| An )
Bayes theorem is applicable when the events for
which we want to compute posterior probabilities
are mutually exclusive and their union is the entire
sample space.