PROBABILITY
1. Classical (A priori) Definition of Probability :
If an experiment results in a total of (m + n) outcomes which are equally
likely and mutually exclusive with one another and if ‘m’ outcomes are
favorable to an event ‘A’ while ‘n’ are unfavorable, then the probability of
m n( A )
occurrence of the event ‘A’ = P(A) = = .
mn n(S)
We say that odds in favour of ‘A’ are m : n, while odds against ‘A’ are n : m.
n
P( A ) = = 1 – P(A)
mn
2. Addition theorem of probability : P(AB) = P(A) + P(B) – P(AB)
De Morgan’s Laws :
(a) (A B)c = A c B c (b) (A B)c = A c B c
Distributive Laws :
(a) A (B C) = (A B) (A C) (b) A (B C) = (A B) (A C)
(i) P(A or B or C) = P(A) + P(B) + P(C) – P(A B) – P(B C) – P(C A) +
P(A B C)
(ii) P (at least two of A, B, C occur) = P(B C) + P(C A) + P(A B)
– 2P(A B C)
(iii) P(exactly two of A, B, C occur) = P(B C) + P(C A) + P(A B)
– 3P(A B C)
(iv) P(exactly one of A, B, C occur) =
P(A) + P(B) + P(C) – 2P(B C) – 2P(C A) – 2P(A B) + 3P(A B C)
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P(A B)
3. Conditional Probability : P(A/B) = .
P(B)
4. Binomial Probability Theorem
If an experiment is such that the probability of success or failure does not
change with trials, then the probability of getting exactly r success in n
trials of an experiment is nC r p r q n – r, where ‘p’ is the probability of a success
and q is the probability of a failure. Note that p + q = 1.
5. Expectation :
If a value M i is associated with a probability of p i , then the expectation is
given by p i M i .
n
6. Total Probability Theorem : P(A) = P(B ) . P(A / B )
i 1
i i
7. Bayes’ Theorem :
If an event A can occur with one of the n mutually exclusive and exhaustive
events B 1, B 2 , ....., B n and the probabilities P(A/B 1), P(A/B 2) .... P(A/B n) are
P(B i ) . P( A / B i )
known, then P(B i / A) = n B 1, B 2, B 3,........,B n
i 1
P(B i ) . P( A / B i )
A = (A B 1) (A B 2) (A B 3) ........ (A B n)
n
P(A) = P(A B 1) + P(A B 2) + ....... + P(A B n) = P(A B )
i1
i
8. Binomial Probability Distribution :
(i) Mean of any probability distribution of a random variable is given by :
pi x i
µ= = p i xi = np
pi
n = number of trials
p = probability of success in each probability
q = probability of failure
(ii) Variance of a random variable is given by,
2 = (xi – µ)2 . p i = p i xi 2 – µ2 = npq
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