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Sachin Kaushal, Lovely Professional University  Unit 3: Conditional Probability and Independence Baye’s Theorem




                          Unit 3: Conditional Probability and                                     Notes

                             Independence Baye’s Theorem




              CONTENTS
              Objectives
              Introduction

              3.1  Conditional  Probability
              3.2  Baye’s Theorem
              3.3  Independence of Events
              3.4  Repeated Experiments and Trials
              3.5  Summary

              3.6  Keywords
              3.7  Self Assesment
              3.8  Review Questions

              3.9  Further Readings



            Objectives

            After studying this unit, you will be able to:
                Discuss probabilities to the outcomes of a random experiment with discrete sample space,

                Explain properties of probabilities of events, I
                Describe the probability of an event,
                Explain conditional probabilities and establish Bayes theorem,

            Introduction

            Suppose that two series of tickets are issued for a lottery. Let 1,2,3,4,5 be the numbers on the 5
            tickets in series I and let 6,7, 8,9, be the numbers on the. 4 tickets in series 11. I hold  the ticket,
            bearing  number 3. Suppose the first prize in the  lottery is  decided by  selecting one  of the
            5 + 4 = 9 numbers at random. The probability that I will win the prize is 1/9. Does this probability
            change if it is known that the prize-winning ticket is from series I? Ineffect, we want to know the
            probability of  my winning the prize,  conditional on  the knqwledge that the  prize-winning
            ticket is from series I.

            In order to answer this question, observe that the given information reduces our sample-space
            from the set { 1,2,3,.4,5,6,7,8,9 } to its subset { 1.2.3.4.5 } containing 5 points. In fact, this subset
            { 1,2,3,4,5 } corresponds to the event H that the prize winning ticket. belongs to series I. If the
            prize winning ticket is selected by choosing one of these 5 numbers at random, the probability
            that I will win the prize is 115. Therefore, it seems logical to say that the conditional probability
            of the event A of my winning the prize, given that the prize-winning number is from series I, is
            P(A | H) = 1/5.



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