PHILIPPINE WOMEN’S UNIVERSITY

TAFT, MANILA

EXPANDED TERTIARY EDUCATION EQUIVALENCY

AND ACCREDITATION PROGRAM (ETEEAP)
SECOND TRIMESTER, SY 2020-2021
BUSINESS STATISTICS – CLUSTER 4
----------------------------------------------------------------------------------------------------------------
TOPIC – 5

BASIC PROBABILITY AND DISCRETE PROBABILITY DISTRIBUTION

Probability is a measure of likelihood that a future event will occur, it can assume any value
between 0 and 1 inclusive.

Sample space is the collection of all possible outcomes for an experiment. A experiment is any
process that generates well-defined outcomes. An Event is a possible outcome of an experiment.

Relative frequency probabilities are defined as the number of times an event occurs divided by
the total number of times the experiment is performed.

Subjective probabilities reflect feelings or opinions concerning the likelihood that a particular
outcome will occur.

Classical probability the assumption is the events of an experiment are equally likely.

Probability Distributions is a listing of the possible values that a random variation can assume
along with their probabilities.

Expected Value of a discrete random variable is the average value that the random variable
assumes over a large number of observations.

Binomial distribution is a discrete probability distribution involving the likelihood of x

successes in n trials of a binomial experiment.

Combination represents the number of possible ways of choosing x things out of n things when
the order of choosing isn’t important.
QUESTIONS:
1. A Okada Hotel keeps 2 buses ready to pick up patrons at the airport and LRT station. Due
to demand and chance of mechanical failure, the probability that a specific bus will be
available when needed is .6. One bus’s availability is independent of the other’s.

Required:
a. In the event of 2 arrivals calling at the same time ( One from the airport and one from the
LRT Station) what is the probability that both buses will be available?
b. Find the probability that neither will be available.
c. If one call is placed from the airport, what is the probability that the bus is available?