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General Probability Rules

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E=event customer has auto insurance. F=event customer has homeowners. Example: ... Now, let's calculate P(E), the probability that an extended warranty is purchased. ... – PowerPoint PPT presentation

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Title: General Probability Rules


1
General Probability Rules
2
Review
  • Probability of when E and F are disjoint is
    easy
  • If E and F are independent then we can compute

3
General Addition Rule for Two Events
  • For any two events E and F,

4
General Multiplication Rule for Two Events
  • For any two events E and F,

5
Example
  • 60 of customers of an insurance agency have
    automobile policies, 40 have homeowners and 25
    have both. What is the probability that he or
    she has at least one of these two types? (Note a
    customer may have only a life insurance policy.)
  • Let
  • Eevent customer has auto insurance
  • Fevent customer has homeowners

6
Example
  • P(customer has at least one of the two types of
    policy)

7
Example
  • P(customer has exactly one of the two types of
    policy)
  • (Mr. Nollen Draws Venn Diagram)

8
Example
  • Suppose 20 of teenage drivers received a
    citation for a moving violation in the past year.
    Of those 80 went to driving school so the
    citation would not appear on their record. If a
    teenage driver is randomly selected, what is the
    probability that he or she received a citation
    and attended traffic school?

9
Example (cont)
  • LetFselected driver received a
    citationEselected driver attended traffic
    school
  • What are we looking for?
  • What do we know?

10
Example (cont)
  • What can we use to find
  • Multiplication rule

11
Example II
  • The table gives information on VCRs sold by an
    appliance store
  • What is the probability that the selected
    customer purchased a brand 1 model and an
    extended warranty?

12
Example II (cont)
  • Lets define the following events
  • B1 event that brand 1 is purchased
  • B2 event that brand 2 is purchased
  • E Event that an extended warranty is purchased
  • What is

13
Example II (cont)
  • Lets define the following events
  • B1 event that brand 1 is purchased
  • B2 event that brand 2 is purchased
  • E Event that an extended warranty is purchased
  • Find (Do it now)

14
Example II (cont)
  • Now, lets calculate P(E), the probability that
    an extended warranty is purchased.
  • This can happen two different ways buy brand 1
    and warranty or buy brand 2 and warranty.
  • Furthermore, since each customer purchased a
    single VCR, they could not have purchased both
    brand 1 and brand 2, so the two events are
    disjoint.

15
Example II (cont)
  • Finding P(E) (that an extended warranty is
    purchased.

16
The Law of Total Probability
  • IF B1 and B2 are disjoint events with
  • P(B1)P(B2)1, then for any event E

17
The Law of Total Probability
  • More generically
  • IF B1, B2, BK are disjoint events with
  • P(B1)P(B2)P(BK)1
  • then for any event E

18
Last Example
  • 68 of elementary school students from Beachwood
    said that they always wear a helmet when
    bicycling, but only 23 of students from Morland
    wear a Helmet.
  • B selected student from Beachwood
  • M selected student from Morland
  • H select student always wears a helmet
  • P(B) P(M) .5

19
Last Example
  • What portion of students always wears helmets?
    (Do it now.)
  • B selected student from Beachwood
  • M selected student from Morland
  • H select student always wears a helmet
  • P(B) P(M) .5
  • 44.5 of the school children in these two
    communities always wear a helmet

20
Practice
  • DO 6.60 Now!
  • Start by defining two events and then stop!
  • Now, using those events, show everything the
    problem asserts.
  • What is question (a) asking?
  • Do it (a) now!
  • What is part (b) asking?
  • Do (b) now.
  • What is question (c) asking?
  • Do (c) now.
  • Do (d) now.

21
Homework
  • 6.53-6.63 odd
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