Question

In: Statistics and Probability

Pick two of the following topics and tell me what you know about that topic. Give...

Pick two of the following topics and tell me what
you know about that topic. Give an example as supporting evidence. You may need more white
space than I gave you.
a) Random vs Simple Random sampling

b) Levels of Measurement

c) Conditional Probability

d) The Addition and Multiplication rules of Probability

Solutions

Expert Solution

C)

  • conditional probability is a measure of the probability of an event occurring given that another event has occurred
  • the probability of A under the condition B", is usually written as P(A | B)
  • Conditional probability is calculated by multiplying the probability of the preceding event by the updated probability of the succeeding, or conditional, event

In a group of 100 sports car buyers, 40 bought alarm systems, 30 purchased bucket seats, and 20 purchased an alarm system and bucket seats. If a car buyer chosen at random bought an alarm system, what is the probability they also bought bucket seats?

Figure out P(A). It’s given in the question as 40%, or 0.4.

Figure out P(A∩B). This is the intersection of A and B: both happening together. It’s given in the question 20 out of 100 buyers, or 0.2.

Insert your answers into the formula:

P(B|A) = P(A∩B) / P(A) = 0.2 / 0.4 = 0.5.

The probability that a buyer bought bucket seats, given that they purchased an alarm system, is 50%.

D)

Addition rule of probability

  • The addition rule states the probability of two events is the sum of the probability that either will happen minus the probability that both will happen
  • The addition rule is: P(A or B) = P(A) + P(B) - P(A and B)

consider a class in which there are 9 boys and 11 girls. At the end of the term, 5 girls and 4 boys receive a grade of B. If a student is selected by chance, what are the odds that the student will be either a girl or a B student? Since the chances of selecting a girl are 11 in 20, the chances of selecting a B student are 9 in 20 and the chances of selecting a girl who is a B student are 5/20, the chances of picking a girl or a B student are:

11/20 + 9/20 - 5/20 =15/20 = ¾

Multiplication rule of probability

  • If A and B are two independent events in a probability experiment, then the probability that both events occur simultaneously is:
  • P(A and B)=P(A)⋅P(B)

For example, if the probability of event A is 2/9 and the probability of event B is 3/9 then the probability of both events happening at the same time is (2/9)*(3/9) = 6/81 = 2/2


Related Solutions

Pick a childhood cancer and tell me about it
Pick a childhood cancer and tell me about it
Pick a congenital heart defect and tell me about it
Pick a congenital heart defect and tell me about it
Tell me what you know about Dow Theory and Technical Analysis. How does the math work?...
Tell me what you know about Dow Theory and Technical Analysis. How does the math work? What charts/indicators/ratios would/do you utilize in your decision making? Would/do you use technical analysis exclusively or would/do you also incorporate fundamental analysis? Do you understand that the Efficient Market Hypothesis suggests, and most other academics believe, that technical analysis does not work? Does that bother you?
tell me about one of the delegating mistakes you might make as a leader tell me...
tell me about one of the delegating mistakes you might make as a leader tell me what step is most important tell me about two barriers to an effective delegation you have used or heard in the past
what do you know about human traficking in india give me a brief description of human...
what do you know about human traficking in india give me a brief description of human tracking in india .
give me examples of topics to analyze an advanced financial topic related to risk management/ derivatives...
give me examples of topics to analyze an advanced financial topic related to risk management/ derivatives subjects.  
who can give me the example like this:(also give me the answer,Tell me what formula should...
who can give me the example like this:(also give me the answer,Tell me what formula should use to calculate and how to use those formulas.)thank you Known: risk profolio. expect return and variance of stock A. expect return and variance of stock B. The yield correlation coefficient of two stocks. Risk combination characteristics Question: expect return. variance. Build a complete portfolio according to the investor's requirements. How many should investors invest in risk portfolios and security assets(T-bill). Calculating the sharp...
would you tell me some list of topic that is not mathematics but can be discussed...
would you tell me some list of topic that is not mathematics but can be discussed how mathematics can be used to understand? something like egnima or turing machine, the golden ratio
Tell me about a challenge you overcome as a financial analyst?
Tell me about a challenge you overcome as a financial analyst?
Tell me in two pages about Doha Round Trade negotiations
Tell me in two pages about Doha Round Trade negotiations
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT