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5.1 Introduction
In the previous unit, you have studied about the measures of central
tendency and measures of dispersion. In this unit, you will study about
measure of uncertainty involved in our day to day lives by using probability
theory.
Every human activity has an element of uncertainty. Uncertainty affects the
decision making process. In your daily life, you very often use the word
‘probably’, like, probably it may rain today; probably the share price may go
up in the next week. Therefore, there is a need to handle uncertainty
systematically and scientifically.
Key statistic
The probability of event A [denoted P(A)], must lie within the interval from
0 to 1.
b) Random experiment
When the outcome of an experiment cannot be predicted with certainty, then
it is called random experiment or stochastic experiment.
There are two types of experiments. They are –
(i) Deterministic experiment and (ii) Random experiment.
A deterministic experiment, when repeated under the same conditions,
results in the same outcome. It has a unique outcome.
Random experiment is an experiment which may not result in the same
outcome when repeated under the same conditions. It is an experiment
which does not have a unique outcome.
Example 1
The experiment of 'toss of a coin' is a random experiment. It is so
because when a coin is tossed the result may be 'Head' or it may be
'Tail'.
Example 2
The experiment of 'drawing a card randomly from a pack of playing
cards' is a random experiment. Here, the result of the draw may be any
one of the 52 cards.
c) Sample space
The set of all possible outcomes of a random experiment is the sample
space. The sample space is denoted by S. The outcomes of the random
experiment (elements of the sample space) are called sample points or
outcomes or cases.
A sample space with finite number of outcomes is a finite sample space. A
sample space with infinite number of outcomes is an infinite sample
space.
Example 3
In tossing of coins, the outcomes are head and tail. The head is denoted
as ‘H’ and the tail as ‘T’. In tossing two coins, the sample space ‘S’ is
given by:
S = ΗΗ, ΗΤ, ΤΗ, ΤΤ
Example 4
While throwing a die, the sample space is
S = {1, 2, 3, 4, 5, 6}. This is a finite sample space
Example 5
Consider the toss of a coin successively until a head is obtained. Let the
number of tosses be noted. Here, the sample space is
S= {1, 2, 3, 4....}. This is an infinite sample space
Key statistic
If the number of outcomes is finite then it is called as finite sample space,
otherwise it is called as an infinite sample space.
d) Event
Event is a subset of the sample space. Events are denoted by A, B, C, etc.
An event which does not contain any outcome is a null event (impossible
event). It is denoted by Φ. An event which has only one outcome is an
elementary event or simple event. An event which has more than one
outcome is a compound event. An event which contains all the outcomes is
equal to the sample and it is called sure event or certain event.
Example 6
While throwing a die, A= {2, 4, 6} is an event. It is the event that the throw
results in an even number. Here, A is a compound event.
Example 7
While tossing two coins, A= {TT} is an event. It is the event that the toss
results in two tails. Here, A is a simple event.
The outcomes which belong to an event are said to be favourable to that
event. The event happens whenever the experiment results in a favourable
outcome. Otherwise, the event does not happen
While throwing a die, the event A = {2, 4, 6} has three favourable
outcomes, namely, 2, 4 and 6, where the throw results in 2, 4 or 6, event A
occurs.
Example 8
While tossing a fair coin, the outcomes 'Head' and 'Tail' are equally likely.
Example 9
While throwing a fair die, the events A={2,4,6}, B = {1,3, 5} and C={ 1,2, 3}
are equally likely.
A sample space is called an equiprobable space if the outcomes are
equally likely. For instance, the sample space S = {1, 2, 3, 4, 5, 6} of throw
of a fair die is equiprobable space because the six outcomes are equally
likely.
Example 10
In tossing an unbiased coin, getting head and tail are equally likely.
Example 14
While throwing a die, the six outcomes together are exhaustive. But here,
if any one of these outcomes is left out, the remaining five outcomes are
not exhaustive.
Example 15
While throwing a die, events A = {2, 4, 6}, B = {3, 6} and C = {1, 5, 6}
together are exhaustive.
h) Complementation of an event
Let A be an event. Then, complement of A is the event of non-occurrence of
A. It is the event constituted by the outcomes which are not favourable to A.
The complement of A is denoted by A or Ā or Ac.
The complement of an event is an event that consists of those possible
outcomes that are different from those outcomes of given event.
While throwing a die, If A = {2, 4, 6}, its complement is A = {1, 3, 5}. Here, A
is the event that the throw results in an even number. A is the event that the
throw does not result in an even number, i.e., A is the event that the throw
results in an odd number.
i) Independent events
Two events are said to be independent of each other if the occurrence of
one is not affected by the occurrence of other or the occurrence of one does
not affect the occurrence of the other.
Example 16
Consider tossing of three fair coins as shown in figure 5.2. Then,
S = { HHH, HHT, HTH, THH, TTH, THT, HTT, TTT}
Let:
A be the event of getting three heads
B be the event of getting two heads
C be the event of getting one head
D be the event of not getting a head
j) Union of events
Union of two or more events is the event of occurrence of at least one of
these events. Thus, union of two events A and B is the event of occurrence
of at least one of them. The union of A and B is denoted by A B or A+B or
(A or B).
Example 17
While tossing two coins simultaneously, let A = {HH} and B = {TT} be two
events. Then, their union is A B = {HH, TT}.
Here, A is the event of occurrence of two heads and B is the event of
occurrence of two tails.
Example 18
While throwing a die, let A = {2, 4, 6}, B = {3, 6} and C = {4, 5, 6} be three
events. Then, their union is A B C = {2, 3, 4, 5, 6}.
l) Intersection of events
Intersection of two or more events is the event of simultaneous occurrence
of all these events. Thus, intersection of two events A and B is the event of
occurrence of both of them. The intersection of A and B is denoted by A∩B
or AB or (A and B).
Example 19
While tossing two coins, let A = {HH, TT}, B = {HH, HT, TH} be two
events. Then, their intersection is A∩B = {HH}.
Example 20
While throwing a die, let A = {2, 4, 6}, B = {3, 6} and C = {4, 5, 6} be three
events. Then, their intersection is A∩B∩C = {6}.
m
P(A) =
n
Where, ‘m’ is the number of favourable outcomes, ‘n’ is the total number of
outcomes of the experiments.
The following are some of the examples of events, where the probabilities of
those events are obtained by classical approach:
Solved Problem 3
A bag contains 3 white, 4 red and 2 green balls. One ball is selected at
random from the bag. Find the probability that the selected ball is
(i) white (ii) non-white (iii) white or green
Solution
The bag has a total of 9 balls. Since the ball drawn can be any one of them,
there are 9 equally likely, mutually exclusive and exhaustive outcomes. Let
events A, B and C be
A: selected ball is white
B: selected ball is non-white
C: selected ball is white or green
(i) There are 3 white balls in the bag. Therefore, out of the 9 outcomes, 3
are favourable to event A.
∴P [white ball] = P (A) = 3/9 = 1/3
(ii) Event B is the complement of event A. Therefore,
∴ P[non-white ball] = P(B) = 1 - P(A) = 1 – 1/3 = 2/3
(iii) There are 3 white balls and 2 green balls in the bag. Therefore, out of
9 outcomes, 5 are either white or green.
∴ P[white ball or green ball] = P(C) = 5/9
Solved Problem 4
One card is drawn from a well-shuffled pack of playing cards. Find the
probability that the card drawn (i) is a heart (ii) is a king (iii) belongs to red
suit (iv) is a king or a queen (v) is a king or a heart.
Solution
A pack of playing cards has 52 cards. There are four suits, namely, spade,
club, heart and diamond (dice). In each suit, there are thirteen
denominations - ace (1), 2, 3,…, 10, jack (knave), queen and king.
A card selected at random may be any one of the 52 cards. Therefore, there
are 52 equally likely, mutually exclusive and exhaustive outcomes. Let
events A, B, C, D and E be —
A: selected card is a heart
B: selected card is a king
C: selected card belongs to a red suit
Solution
A: selected number is even
B: selected number is a multiple of 3
(i) Four of the selections, namely, 2, 4, 6 and 8 are favourable to event A
∴ P [even number] = P(A) = 4/8 = 1/2
(ii) Two of the selections, namely, 3 and 6 are favourable to event B
∴ P[multiple of 3] = P(B) = 2/8 = 1/4
2) Statistical / relative frequency / empirical / posteriori approach
Under this approach the probability of an event is arrived at after conducting
an experiment. If we want to know the probability that a particular household
in an area will have two earning members, then we have to gather data on
all households in that area and then arrive at the probability. Greater the
number of households surveyed, greater will be the accuracy in the
probability, arrived.
The probability of an event ‘A’ in this case is defined as,
m
P(A) = nLim
n
In real life, it is not possible to conduct experiments because of high cost or
of destructive type experiments or of vast area to be covered.
3) Subjective approach
Under this approach the investigator or researcher assigns probability to the
events either from his experience or from past records. It is more suitable
when the sample size is ten or less than ten. The investigator has full
knowledge about the characteristics of each and every individual. However,
there is a chance of personal bias being introduced in such probability.
4) Axiomatic approach
Let S be a sample space consisting of all events of a random experiment
and A S , then the probability of an event A is a set function satisfying the
following axioms:
i) Axioms of positivity, P(A) 0
ii) Axiom of certainty, P(S) = 1
n
n
P Ai P
(A
i)where A , A ,...A are
iii) Axiom of addition, 1
i
i
1 1 2 n
Example 19
A sales manager may like to know the probability that he will exceed the
target for product A or product B. Sometimes, he would like to know the
probability that the sales of product A and B will exceed the target. The
first type of probability is answered by addition rule. The second type of
probability is answered by multiplication rule.
5.2.1 Addition rule
The addition rule of probability states that:
i) If ‘A’ and ‘B’ are any two events then the probability of the occurrence
of either ‘A’ or ‘B’ is given by:
ΡΑ Β = ΡΑ + ΡΒ ΡΑ Β
ii) If ‘A’ and ‘B’ are two mutually exclusive events then the probability of
occurrence of either ‘A’ or ‘B’ is given by:
ΡΑ Β = ΡΑ + ΡΒ
iii) If ‘A’, ‘B’ and ‘C’ are any three events then the probability of occurrence
of either ‘A’ or ‘B’ or ‘C’ is given by:
ΡΑ Β C = ΡΑ + ΡΒ + ΡC ΡΑ Β ΡΒ C ΡΑ C + ΡΑ Β C
In terms of Venn diagram, from the figure 5.3, we can calculate the
probability of occurrence of either event ‘A’ or event ‘B’, given that event ‘A’
and event ‘B’ are dependent events. From the figure 5.4, we can calculate
the probability of occurrence of either ‘A’ or ‘B’, given that, events ‘A’ and ‘B’
are independent events. From the figure 5.5, we can calculate the
probability of occurrence of either ‘A’ or ‘B’ or ‘C’, given that, events ‘A’, ‘B’
and ‘C’ are dependent events.
Fig. 5.3: A B for Two Fig. 5.4: AB for Two Fig. 5.5: ABC for
Dependent Events Independent Events Three Dependent
A and B A or B Events A, B and C
iv) If A1, A2, A3………, An are ‘n’ mutually exclusive and exhaustive events
then the probability of occurrence of at least one of them is given by:
ΡΑ1 Α2 ....... Αn = ΡΑ1 + ΡΑ2 + ........+ ΡΑn .
5.2.2 Multiplication rule
If ‘A’ and ‘B’ are two independent events then the probability of occurrence
of ‘A’ and ‘B’ is given by:
ΡΑ Β = ΡΑΡΒ
Solved Problem 6
i) Show that P(A) = 1 – P(A')
ii) Show that probability is a value between 0 and 1.
iii) Show that P(Ф) = 0 where Ф is null event.
Solution
(i) If A and A' are complementary events, AA' = S
By the axiom 2, P(S) = 1. And so, P (A A') =1 .... Result 1
But A and A' are mutually exclusive events. Therefore, by the axiom 3,
P(A A') = P(A) + P(A') …Result 2
By the results 1 and 2, P(A) + P(A') = 1
That is, P(A) = 1- P(A')
(ii) Let A be an event. Then, by the axiom 1,
P(A) ≥0 ....Result 1
If A' is the complementary event of A,
P(A') = 1 – P(A)
But, by axiom 1, P(A') ≥0
Therefore, 1 - P(A) ≥ 0
Hence, P(A) ≤ 1 …Result 2
Solution
(i) Since the sample space is equiprobable, mathematical definition
can be used for finding probability.
P(AP(B)
Ρ AB =
B)
ΡB A =
P(A B)
P(A)
For any bivariate distribution, there exists two marginal distributions and
‘m + n’ conditional distributions, where ‘m’ and ‘n’ are the number of
classifications/characteristics studied on two variables.
Example 20
Consider the example of a librarian who analysed the type of visitors and
their choice of library section. The data is represented in table 5.1
Sikkim Manipal University Page No. 230
Statistics for Management Unit 5
iii) The table 5.1c represents the distribution of people in sections given that
they are under graduate. Therefore, it is a conditional distribution.
Table 5.1c: Conditional Distribution
Level of News
Magazine Novels Subjects Total
education paper
Under
50 100 120 50 320
graduate
Thus, for any bivariate distributions having ‘m’ and ‘n’ classifications there
exist two marginal distributions and ‘m + n’ conditional distributions. In this
case there are 3 + 4 = 7 conditional distributions.
Solved problem 9
Calculation of n C r for the following values of ‘n’ and ‘r’:
i. n = 10 and r = 2
ii. n =16 and r = 3
Solution
10 10 9
i. C2 = = 45
1 2
16 16 15 14
ii. C3 = = 560
1 2 3
Key statistic
n
C r = n C n -r
n
C0 = nCn = 1
0! = 1
Solved Problem 10
Calculate 16C13.
Solution
16
C13 = 16C16-3 = 16C3 = 560
16
The value of C13 is 560.
Solved Problem 11
Find the probability of getting a head when a coin is tossed?
Solution
Let ‘A’ be the event of getting a head.
S = Η, Τ n(S) = 2
n(A) = 1
n(A) 1
∴ P(A) = =
n(S) 2
Therefore, the probability of getting a head when a coin is tossed is 0.5.
Solved Problem 12
What is the probability of getting two heads when 3 coins are tossed and
what is the probability of getting at least one head?
Solution
i) Let ‘A’ be the event of getting two heads.
S = ΗΗΗ, ΗΗΤ, ΗΤΗ, ΤΗΗ, ΤΤΗ, ΤΗΤ, ΗΤΤ, ΤΤΤ nS = 8
nS = 62 = 36
Solved Problem 14
What is the probability of getting at least a sum of ‘nine’ when two dice are
thrown?
Solution
Let ‘A’ be the probability of getting at least a sum of nine.
nS = 62 = 36
A is the event of combination of mutually exclusive events of getting a sum 9
or 10 or 11 or 12.
Α = 6,3, 3,6, 5,4, 4,5, 6,4, 4,6, 5,5, 6,5, 5,6, 6,6 nΑ = 10
n(A) 10 5
∴ P(A) = =
n(S) 36 18
Therefore, the probability of getting at least a sum of ‘nine’ when two dice
are thrown is 5/18.
Solved Problem 15
A number is selected at random from the numbers 1 to 30. What is the
probability that:
i. It is divisible by either 3 or 7
ii. It is divisible by 5 or 13
Solution
i) Let ‘A’ be the event of selecting a number divisible by 3. Let ‘B’ be the
event of selecting a number divisible by 7.
nS= 30C1 = 30
Α = 3,6,9,12,15,18,21,24,27,30
nΑ = 10
Β = 7,14,21,28
nΒ = 4
Α Β = 21 nΑ Β = 1
10 4 1 13
= + =
30 30 30 30
Therefore, the probability that a number is divisible by 3 or 7 is 13/30.
ii) Let ‘A’ be the event of selecting a number divisible by 5. Let ‘B’ be the
event of selecting a number divisible by 13.
nS= 30C1 = 30
Α = 5,10,15,20,25,30 nΑ = 6
Β = 13,26 nΒ = 2
A and B are mutually exclusive.
∴ΡΑ Β = ΡΑ + ΡΒ
6 2 8 4
= + = =
30 30 30 15
Therefore, the probability that a number is divisible by 5 or 13 is 4/15.
Solved Problem 16
The Board of Directors of a company wants to form a quality management
committee to monitor quality of their products. The company has 5
scientists, 4 engineers and 6 accountants. Find the probability that the
committee will contain 2 scientists, 1 engineer and 2 accountants?
Solution
Let ‘A’ be the event of selecting 2 scientists, 1 engineer and 2 accountants.
Then,
15
14
13
12
11
15
n(S)
C
5
3003
1
2
3
4
5
5 4 65
n(A) = 4 = 10 4 15 = 600
1 2 1 2
n(A) 600
∴ P(A) =
n(S) 3003
Solved Problem 17
The odds favouring the event of a person hitting a target are 3 to 5. The
odds against the event of another person hitting the target are 3 to 2. If each
of them fire once at the target, find the probability that:
i) Both of them hit the target
ii) At least one of them hit the target
Solution
i) Let ‘A’ be event of first person hitting a target. Odds in favour means,
3 3
∴P(A) = = (1st ratio)
3+ 5 8
Let ‘B’ be event of Second person hitting a target. Odds against means,
2 3
∴P(B) = = (2nd ratio)
3+ 2 5
Both hitting the target mean A B and A and B are independent
3 2 3
∴P(A B) = P(A)P(B)= =
8 5 20
Therefore, the probability that both persons hit the target is 3/20.
ii) Let ‘A’ be the probability of hitting the target. Therefore,
3
P(A) =
8
2
Let ‘B’ be the probability of hitting the target. Therefore, P(B) =
5
ΡΑ Β = ΡΑ + ΡΒ ΡΑ Β
3 2 3 15 16 6 25 5
ΡΑ Β
8 5 20 20 40 8
Therefore, the probability that at least one of the persons hit the target
is 5/8.
Solved Problem 18
The probabilities that drivers A, B and C will drive home safely after
consuming liquor are 2/5, 3/7 and 3/4, respectively. What is the probability
that they will drive home safely after consuming liquor?
Solution
Let ‘A’ be the event of driver ‘A’ driving safely after consuming liquor. Let ‘B’
be the event of driver ‘B’ driving safely after consuming liquor. Let ‘C’ be the
event of driver ‘C’ driving safely after consuming liquor.
2 3 3
Given P(A) = , P(B) = , P(C) =
5 7 4
The events A, B, and C are independent. Therefore,
ΡA B C = ΡA ΡB ΡC
ΡA B C = =
2 3 3 18 9
5 7 4 140 70
Therefore, the probability that all the drivers will drive home safely after
consuming liquor is 9/70.
Solved Problem 19
The probabilities that ‘A’ and ‘B’ will tell the truth are 2/3 and 4/5
respectively. What is the probability that:
i) They agree with each other
ii) They contradict each other while giving a testimony in the court.
Solution
i) Let ‘A’ be the event of A telling truth. Let ‘B’ be the event of B telling
truth.
2 1
Given P(A) = P( Αc ) = 1 P(A) =
3 3
4
P(B) =
5
1
P(Bc ) 1 P(B) =
5
Both will agree if they say truth or they together lie, that is,
Α Β or Αc Βc
They are mutually exclusive. Therefore,
ΡΑ Β + Ρ Αc Βc = ΡΑ ΡΒ + Ρ Αc Ρ Βc
2 4 1 1 9 3
= + = =
3 5 3 5 15 5
Sikkim Manipal University Page No. 238
Statistics for Management Unit 5
Solution
Given that:
3. Given P(A) = 0.6, P(B) = 0.7, and P(A B) = 0.5. Find P(A U B)?
The event ‘B’ is made up of four mutually exclusive and exhaustive events.
1
2
3
4
= ΡΑi Β …….(1) [by using the law of marginal probability]
We know that:
Consider:
ΡΑ1 Β
Ρ A1 B = …. from above equation (2)
ΡΒ
1.
1
i
by substituting (1) in the denominator and (3) in the numerator.
In general, the Bayes’ theorem states that if A1, A2………….., An are ‘n’
mutually exclusive and exhaustive events with prior probabilities
P(A1),P(A2 ),...P(An ) respectively and ‘B’ be an event for which the
conditional probabilities of the probability of occurrence of B given A1 , B
given A 2 ,… B given An are P(B/ A1 ), P(B/ A2 ),...P(B/ An ) respectively
then the posterior probability of occurrence of A1 given that given that ‘B’
has already occurred is given by:
P(A1 ). P(B / A1 )
P(A1 /B) = n
P(A ) P(B/ A )
i =1
i i
The given information can be put in the following form. We note that,
ΡΑ Β = ΡΑ.ΡΒ / Α
and ΡΒ = ΡΑi Β
ΡΑ ΡΒ / Α
= i i
0
.0400
A1 0.4 0.10 0.0400 0.2807
0
.1425
0.0525
A2 0.35 0.15 0.0525
0.3684
0.1425
0.0500
A3 0.25 0.20 0.0500
0.3509
0.1425
Solution
Let us consider the following:
Let ‘A1’ be the event that the product was produced by M1
Let ‘A2’ be the event that the product was produced by M2
Let ‘A3’ be the event that the product was produced by M3
Let ‘B’ be the event that the product is defective
Then, we are given:
4000
1
0.
20
20000
210000
0
.5
2000
36000
0
.3
20000
P(B/A1) = 0.05 P(B/A2) = 0.04 P(B/A3) = 0.08
The above information is represented in table 5.4.
Table 5.4: Required Probabilities for the Data in Solved Problem 25
0
.020
A2 0.5 0.04 0.020
0
.3704
0.054
0.054
A3 0.3 0.08 0.024
0.4444
1.0000
Example 22
Let ‘X’ denote the number of heads obtained, while tossing two fair coins.
Then, X is a random variable which takes the values 0,1 and 2 wit
respective probabilities ¼, ½ and ¼ . Here, X is a discrete random variable.
Example 23
Let ‘X’ denote the number obtained while throwing a fair die. Then, ‘X’ is a
discrete random variable taking values 1, 2, 3, 4, 5 and 6 with probability 1/6
each
Example 24
Let ‘X’ denote the weight of apples. Then, ‘X’ is a continuous random
variable.
For example, let us consider the tossing of three coins. The table 5.5
displays the probabilities of getting heads when three coins are tossed.
Table 5.5: Probabilities of Getting Heads when Three Coins are Tossed
No. of Heads
P(X)
(X)
3 ⅛
2 ⅜
1 ⅜
0 ⅛
Total 1
ΡΧ = 1
i
Where, E Χ2 = Χi2 ΡΧi
Its standard deviation is:
S.DΧ = VarΧ = E Χ2 EΧ2
Solved Problem 26
A random variable takes the values -3, -2, 1, 0, 4, 6 with probabilities 1/12,
2/12, 3/12, 4/12, 1/12, 1/12 respectively. Find its mean or expected value
and variance?
Solution
The table 5.6 represents the values required to calculate expectation and
variance for the data in solved problem 26.
Table 5.6: Required Values for Calculating Mean and Variance for the Data
2
XI P(Xi) Xi P(Xi) Xi P(Xi)
-3 1/12 -3/12 9/12
-2 2/12 -4/12 8/12
1 3/12 3/12 3/12
0 4/12 0 0
4 1/12 4/12 16/12
6 1/12 6/12 36/12
Total 6/12 72/12 = 6
∴ EΧ = Χi ΡΧi = 6 / 12 = 1/ 2
VarΧ = E Χ2 EΧ2 = 6 1/ 4 = 23/ 4
S.DΧ = 23/ 4 2.4
Hence, the mean, variance and standard deviation are 0.5, 5.75 and 2.4.
Solved Problem 27
Mr. Arun and Mr. Bandari play a game. If Mr. Arun picks up an even number
from 1 to 6, Mr. Bandari will pay him double the amount equal to picked up
number. If Mr. Arun picks up an odd number then he has to pay amount
equal to double the picked up number. What is Mr. Arun’s expectation?
Solution
Let Xi be the random variable and P(Xi) be its probability. The probabilities
are indicated in table 5.7.
Table 5.7: Required Values for Calculating Mean and Variance for the Data
Solved Problem 28
The table 5.8 displays the distribution of random variable X. Find the
following probabilities:
i) P(Xi) 3
ii) P(Xi = 0)
iii) P(1 Xi 3)
iv) P(Xi) 4
Table 5.8: Distribution of a Random Variable X
Xi -3 -2 0 1 2 3 4 5
P(Xi) K 2K 2K 3K 3K 2K K K
Solution
Since Xi is a random variable ΡΧ = 1
i
K + 2K + 2K + 3K + 3K + 2K + K + K =1
15K =1 ∴K =1/15
i) ΡΧi 3 = ΡΧi = 3 + ΡΧi = 4 + ΡΧi = 5
= 2K + K + K = 4K = 4 /15
ii) ΡΧi = 0 = 2K = 2 / 15
iii) Ρ1 Χi 3
= ΡΧi = 1 + ΡΧi = 2 + ΡΧi = 3
= 3K + 3K + 2K = 8K = 8 /15
iv) ΡΧi 4 = ΡΧi = 4 + ΡΧi = 5
= K + K = 2K = 2 /15
Solved Problem 29
Two fair coins are tossed once. Find the mathematical expectation of the
number of heads obtained.
Solution
Let X denote the number of heads obtained. Then, X is a random variable
which takes the values 0, 1 and 2 with respective probabilities ¼ ½ and ¼
and that is,
Table 5.9
Xi 0 1 2
P(Xi) ¼ ½ ¼
∴ EΧ = Χi ΡΧi = 0
1 1 1
+1 + 2 =1
4 2 4
Key Statistics
1. For a random variable X, the arithmetic mean is E(X).
2. For a random variable X, the variance is
4
P(0) = P[both red] = C2 2
7
=
C2 7
C2 4 C1 4
3
P(1) = P[one white and one red] = 7
=
C2 7
P(2) = P[both white] =
3
C2 1
7
=
C2 7
The probability distribution of X is –
Table 5.10
X 0 1 2
P(X) 2/7 4/7 1/7
∴ EΧ = Χi ΡΧi
2 4 1 6
0 + 1 + 2 =
7 7 7 7
1 (approximately)
5.7 Summary
Let us recapitulate the important concepts discussed in this unit:
Probability plays an important role in decision making process. The
basic definitions and approaches are explained with examples. The real
life situations where you can apply different rules of probability are also
explained with examples.
When multiple events are involved in an experiment, the concerned
probabilities are calculated using addition and multiplication rules of
probability.
Bayes’ theorem deals with the probability of the occurrence of an event
to the occurrence or non-occurrence of an associated event. This is an
important theorem helpful for managers in business decisions.
Random variable is a not a variable. It is a function. It can be discrete or
continuous.
5.8 Glossary
Equally likely events (equiprobable events): Two or more events are
equally likely if they have equal chance of occurrence.
Event: Even is a subset of the sample space.
Exhaustive set of events: A set of events is exhaustive if one or the other
of the events in the set occurs whenever the experiment is conducted.
Experiment: An operation that results in a definite outcome is called an
experiment.
Mutually exclusive events (disjoint events): Two or more events are
mutually exclusive if only one of them can occur at a time.
Activity
Problem 1
The probability that a contractor will get a plumbing contract is 2/3 and
probability that he will not get an electrical contract is 5/9. If the probability
of getting at least one of these contracts is 4/5, what is the probability that
he will get both?
Problem 2
A can solve 90 percent of the problems given in a book and B can solve
70 percent. What is the probability that at least one of them will solve a
problem selected at random.
Problem 3
The probability that a trainee will remain with a company 0.6, The
probability that an employee earns more ten Rs.10,000 per year 0.5. The
probability an employee is trainee who remained with the company or who
earns more than Rs.10,000 per year is 0.7. What is the probability of a
trainee who earns more than Rs.10,000 per year given that he is a trainee
who stayed with the company.
Problem 4
Suppose that one of the three men, a politician, a bureaucrat and an
educationist will be appointed as VC of the university. The probabilities of
their appointment are respectively 0.3, 0.25 and 0.45. The probability that
these people will promote research activities if they are appointed is 0.4,
0.7 and 0.8 respectively. What is the probability that research will be
promoted by the new VC.
Problem 5
A box contains 4 green and 6 white balls another box contains 7 green
and 8 white balls. Two balls are transferred from box 1 to box 2 and then
a ball is drawn from box 2. What is the probability that it is white?
event A: transferred balls are green
event B: transferred balls are white
event C: Among transferred balls one green and 1 white
event D: selection of a white ball from box 2
5.10 Answers
Terminal Questions
1. Refer section 5.1.4
2. 13/16
3. 0.92, yes
4. i) 4/9, ii) 5/9
5. 3/4
6. 0.92
7. 0.28
8. 21/29
Activity Solution
Solution 1
Let, A: contractor gets plumbing contract
B: contractor gets electrical contract
Then, P(A) = 2/3 P(B) = 5/9 and P(A B) = 4/5
Therefore, P(B) = 1-P(B`) = 4/9
By addition theorem we have,
P(A B) = P(A) +P(B) – P(A B)
That is, P(A B) = P(A) +P(B) – P(A B)
Therefore,
P[he gets both plumbing and electrical contract] =
P(A B) = P(A) +P(B) – P(A B)
= 2 / 3 + 4 / 9 4 / 5 = 14 / 45
Solution 2
Event A: student A solve the problem
Event B: student B solves the problem.
P(at least one solve the problem) = 1-P(none solve the problem)
1 P A B
1 P(A).P(B)
1 (0.10)(0.30)
0.97
Solution 3
Event A: a trainee will remain with the company
Event B: a trainee earns more than Rs. 10,00.
Given P(A) = 0.6 P(B) = 0.5 P(A B) = 0.7
We need to find
P(A B) P(A) + P(B) P(A B) 0.4
P(B/ A) = = = = 0.67
P(A) P(A) 0.6
Solution 4
Event A: politician appointed as VC
Event B: bureaucrat appointed as VC
Event C: educationist appointed as VC
Event D: promotion of research activities
∴= P(A D) + P(B D) + P(C D).
= P(D/ A).P(A) + P(D/ B).P(B)+ P(D/ C).P(C)
(0.3)(0.4) + (0.25)(0.7) + (0.45)(0.8) = 0.655
Solution 5
Event A: transferred balls are green
Event B: transferred balls are white
Event C: among transferred balls one green and 1 white
Assuming hypothetical figures, analyse the same and present the findings to
the CEO
(Source: T N Srivastava and Shailaja Rejo (2008) Statistics for Management,
th
5 ed., TMH)
References:
Agarwal, B. L. (2006), Basic Statistics, Fourth Edition, New Age
International Publishers.
Anderson, David R. Sweeney, Dennis J. & Williams, Thomas A. 5th ed.,
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Bowerman, B. L. & R.T. O Connel, (1996), Applied Statistics: Improving
Business Processes, Irwin.
Freedman, D., Pisani, R. and Purves, R.(1997), Statistics, 3rd ed., W. W.
Norton.
Levin, Richard I. & Rubin, David S. (2008), Statistics for Management,
Seventh Edition, PHI Learning Private Limited.
Srivastava, T. N. & Rejo, Shailaja (2008), Statistics for Management, 5th
ed., TMH.
Tanur, J. M. (2002), Statistics: A Guide to the Unknown, 4th ed., Brooks
/Cole..
Tukey J.W ,Exploratory Data Analysis, Addison –Wesley, 1977.
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E-References:
http://www.textbooksonline.tn.nic.in/Books/11/Stat-EM/Chapter-1.pdf