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Lecture 11 Introduction to Probability

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Which one would you be most likely to play Consider the following three games. Which one would you be most likely to play? Which one would you be least likely to play? Explain your answer mathematically. 1.Game I: You toss a fair coin once. If a head appears you receive $3, but if a tail appears you have to pay $1. 2.Game II: You buy a single ticket for $10 for a raffle that has a total of 500 tickets. Two tickets are chosen without replacement from the 500. The holder of the first ticket selected receives $300, and the holder of the second ticket selected receives $ Game III: You toss a fair coin once. If a head appears you receive $1,000,002, but if a tail appears you have to pay $1,000,000

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Experiment - Is a process that, when performed, results in one and only one of many observations. Outcomes - These observations are called the outcomes of the experiment Sample Space - The collection of all outcomes for an experiment is called a sample space denoted by S 11.1 Experiment, Outcomes, and Sample Space

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Example Experiment, Outcomes, and Sample Space ExperimentOutcomesSample Space Toss a coin onceH, T Roll a dice once Toss a coin twice Play Lottery Take a test

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In a tree diagram, each outcome is represented by a branch of the tree. Example Draw the tree diagram for the experiment of tossing a coin twice. Tree diagram

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Simple event An event that includes one and only one of the outcomes for an experiment is called a simple event Compound event A compound event is a collection of more than one outcome for an experiment. Compound events Simple and Compound Events

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Example In a group of people, some are in favor of genetic engineering and others are against it. Two persons are selected at random from this group and asked whether they are in favor of or against genetic engineering. How many distinct outcomes are possible? List all the outcomes included in each of the following events and mention whether they are simple or compound events. Both persons are in favor of genetic engineering. At most one person is against genetic engineering. Exactly one person is in favor of genetic engineering Simple and Compound Events

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11.2 Calculating Probability

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Two Properties of Probability

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Classical probability Relative frequency concept of probability Subjective probability concept Three Conceptual Approached to Probability

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Classical Probability The classical probability rule is applied to compute the probabilities of events for an experiment for which all outcomes are equally likely. Example Find the probability of obtaining a head and the probability obtaining a tail for tossing a coin once. Example Find the probability of obtaining an even numbers for rolling a dice once. Classical Probability

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Relative Frequency Concept of Probability

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Example Ten of the 500 randomly selected cars manufactured at a certain auto factory are found to be malfunctioning. Assuming that the lemons are manufactured randomly, what is the probability that the next car manufactured at this auto factory is malfunctioning? Relative Frequency Concept of Probability

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Subjective probability is the probability assigned to an event influenced by the biases on subjective judgment, experience, information and belief. Subjective Probability

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Marginal Probability Marginal probability is the probability of a single event without consideration of any other event. They are calculated by dividing the corresponding row margins (total of the rows) or column margins (total of the columns) by the grand total Marginal and Conditional Probabilities

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Marginal Probability In FavorAgainst Male1545 Female4356

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Conditional Probability

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In FavorAgainst Male1545 Female4356

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11.4 Intersection of Events and the Multiplication Rule

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11.5 Union of Events and the Addition Rule

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Example A university president has proposed that all students must take a course in ethics as a requirement for graduation. Three hundred faculty members and students from this university were asked about their opinion on this issue. The table below gives a two- way classification of the responses of these faculty members and students Union of Events

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Find the probability that one person selected at random from these 300 persons is a faculty member or is in favor of this proposal? Is a student or is opposed of this proposal? Is a student or is neutral of this proposal? Union of Events FavorOpposeNeutral Faculty Student

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Example In a group of 2500 persons, 1400 are female, 600 are vegetarian and 400 are female and vegetarian. What is the probability that a randomly selected person from this group is a male or vegetarian? Intersection and Union

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11.6 Complementary Events

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Example In a group of 2000 taxpayers, 400 have been audited by IRS at least once. If one taxpayer is randomly selected from this group, what are the two complementary events of this experiment, and what are their probabilities? 11.6 Complementary Events

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11.7 Mutually Exclusive Events

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Example Consider the following events for rolling a dice once. A = an even number is observed = {2, 4, 6} B = an odd number is observed = {1, 3, 5} C = a number less than 5 is observed = {1, 2, 3, 4} Are events A and B mutually exclusive? Are events A and C mutually exclusive? 11.7 Mutually Exclusive Events

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11.8 Independent and Dependent Events

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Example A box contains a total of 100 CDs that were manufactured on two machines. Of them, 60 were manufactured on Machine I. Of the total CDs, 15 are defective. Of the 60 CDs that were manufactured on Machine I, 9 are defective. Let D be the event that a randomly selected CD is defective, and let A be the event that a randomly selected CD was manufactured on Machine I. Are events A and D independent? 11.8 Independent and Dependent Events

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In a population of 100,000 citizen, 0.2% having a kind of disease. If a test is conducted, the test is 99% accurate to detect the disease. Suppose you did a test and the result is positive. What is the probability that the you do not have the disease? Bayes Theorem

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RMIT University; Taylor's College32 Bayes Theorem

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RMIT University; Taylor's College33 Bayes Theorem According to American Lung Association, 7.0% of the population has a lung disease. Of those having lung disease, 90.0% are smokers, of those not having lung disease, 25.3% are smokers. Determine the probability that a randomly selected smoker has lung disease.

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