Chapter 1. Probability
Chapter 1. Probability
Basic Definitions
2.1. Probability Random experiment and sample space
1.3. Probability Rules Events
1.4. Bayes’ Theorem
PROBABILITY
November 4, 2023
Random experiment
Definition
A random experiment is a process leading to two or more possible
outcomes, without knowing exactly which outcome will occur.
Example:
A coin is tossed and the outcome is either a head or a tail.
The number of persons admitted to a hospital emergency room
during any hour cannot be known in advance.
A customer enters a store and either purchases a shirt or does not.
S = {O1 , O2 }
Exercise
Ex 1: Let the left hand toss a coin and the right hand rolls a dice.
Determine all basic outcomes and the sample space.
Event
Definition
An event, E, is any subset of basic outcomes from the sample space.
An event occurs if the random experiment results in one of its
constituent basic outcomes.
A basic outcome belonging to the event E is said to be satisfying
the event E.
The empty set 0/ is called a null event.
Intersection of Events
Definition
Let A and B be two events in the sample space S. Their intersection,
denoted by A ∩ B, is the set of all basic outcomes in S that belong to
both A and B. Hence, the intersection A ∩ B occurs if and only if both
A and B occur.
In particular, If the events A and B have no common basic outcomes,
A ∩ B = 0,
/
Definition
Let A and B be two events in the sample space, S. Their union,
denoted by A ∪ B, is the set of all basic outcomes in S that belong to at
least one of these two events. Hence, the union A ∪ B occurs if and
only if either A or B or both occur.
E1 ∪ E2 ∪ . . . ∪ En = S,
Complement
Definition
Let A be an event in the sample space S. The set of basic outcomes of
a random experiment belonging to S but not to A is called the
complement of A and is denoted by A.
Exercise
Ex 1: We designate four basic outcomes for the Dow Jones Industrial
average over two consecutive days:
O1 : The Dow Jones average rises on both days.
O2 : The Dow Jones average rises on the first day but does not rise on
the second day.
O3 : The Dow Jones average does not rise on the first day but rises on
the second day.
O4 : The Dow Jones average does not rise on either day.
We consider these two events:
A: “ The Dow Jones average rises on the first day.”
B: “ The Dow Jones average rises on the second day.”
Find the intersection, union, and complement of A and B. (as a
sentence and as a subset)
Nguyễn Hoàng Huy Tú Probability
1.1. Basic Definitions
2.1. Probability Random experiment and sample space
1.3. Probability Rules Events
1.4. Bayes’ Theorem
Exercise
S = {E1 , E2 , E3 , E4 , E5 , E6 , E7 , E8 , E9 , E10 }
Exercise
Ex 3: Florin Frenti operates a small, used car lot that has three
Mercedes (M1 , M2 , M3 ) and two Toyotas (T1 , T2 ). Two customers,
Cezara and Anda, come to his lot, and each selects a car. The
customers do not know each other, and there is no communication
between them. Let the events A and B be defined as follows:
A: The customers select at least one Toyota.
B: The customers select two cars of the same model.
a. Identify the sample space.
b. Define event A.
c. Define event B.
d. Find the intersection, union, and complement of A and B.
e. Find the intersection and union A and B
Nguyễn Hoàng Huy Tú Probability
1.1. Basic Definitions
2.1. Probability Definitions
1.3. Probability Rules Properties
1.4. Bayes’ Theorem
Classical Probability
Definition
Assume that all outcomes in a sample space are equally likely to
occur. Then the probability of an event A is defined by
NA
P(A) =
N
where
N = the total number of outcomes in the sample space.
NA = the number of outcomes that satisfy the condition of event
A.
Example
A small computer store has three Hewlett-Packard and two Dell
computers in stock. Suppose that Susan Spencer comes to purchase
two computers. Any computer on the shelf is equally likely to be
selected. What is the probability that Susan will purchase one
Hewlett-Packard and one Dell computer?
The sample space S is
S = {H1 D1 , H1 D2 , H2 D1 , H2 D2 , H3 D1 , H3 D2 , H1 H3 , H2 H3 , D1 D2 }.
If A is the event “one Hewlett- Packard and one Dell computer” then
A = {H1 D1 , H1 D2 , H2 D1 , H2 D2 , H3 D1 , H3 D2 }
Hence the probability of event A is
NA 6
P(A) = =
N 10
Nguyễn Hoàng Huy Tú Probability
1.1. Basic Definitions
2.1. Probability Definitions
1.3. Probability Rules Properties
1.4. Bayes’ Theorem
n!
Pnx =
(n − x)!
Example
A small computer store has three Hewlett-Packard and two Dell
computers in stock. Suppose that Susan Spencer comes to purchase
two computers. Any computer on the shelf is equally likely to be
selected. What is the probability that Susan will purchase one
Hewlett-Packard and one Dell computer?
Sample space S: 2 computers
N = C52 = 10
The event A: one Hewlett-Packard and one Dell computer.
NA = C13 .C21 = 6
Then
NA 6
P(A) = =
N 10
Nguyễn Hoàng Huy Tú Probability
1.1. Basic Definitions
2.1. Probability Definitions
1.3. Probability Rules Properties
1.4. Bayes’ Theorem
Exercise
Exercise
Exercise
Definition
The relative frequency probability is the limit of the proportion of
times that event A occurs in a large number of trials, n,
nA nA
P(A) = lim ≈
n→+∞ n n
where
nA is the number of A outcomes.
n is the number of trials.
Example
Properties
Properties
i. If A is any event in the sample space S, then
0 ≤ P(A) ≤ 1.
ii. Let A be an event in S and let Oi denote the basic outcomes. Then
P(A) = ∑ P(Oi )
A
Complement Rule
Rule
Let A be an event and A its complement. Then the complement rule is
as follows:
P(A) = 1 − P(A)
Addition Rule
Rule
Let A and B be two events. Using the addition rule, the probability of
their union is as follows:
As a corollary,
P(A ∩ B) = P(A) − P(A ∩ B)
P(A ∩ B) = P(B) − P(A ∩ B)
Example
Example 1: The probability of A is 0.60, the probability of B is 0.45,
and the probability of both is 0.30. What is the probability of either A
and B?
Exercise
Ex 1: A cell phone company found that 65% of all customers want
text messaging on their phones, 70% want photo capability, and 40%
want both.
a. What is the probability that a customer will want at least one of
these?
b. What is the probability that a customer will want text messaging
but not photo capability?
c. What is the probability that a customer will only want photo
capability?
Ex 2: A customer intends to buy a box of products by randomly
taking out 4 products at the same time from the box to check. If there
is no more than 1 defective product, then buy a box of products.
Calculate the probability that the customer will buy the box. Given
that the product box has 20 products, of which 5 are defective.
Nguyễn Hoàng Huy Tú Probability
Complement Rule
1.1. Basic Definitions
Addition Rule
2.1. Probability
Conditional Probability
1.3. Probability Rules
Multiplication Rule
1.4. Bayes’ Theorem
Statistical Independence
Example
Conditional Probability
Definition
Let A and B be two events. The conditional probability of event A,
given that event B has occurred, is denoted by P(A|B) and is found to
be as follows:
P(A ∩ B)
P(A|B) = provided that P(B) > 0
P(B)
Similarly,
P(A ∩ B)
P(B|A) = provided that P(A) > 0
P(A)
Multiplication Rule
Rule
Let A and B be two events. Using the multiplication rule of
probabilities, the probability of their intersection can be found as
P(A ∩ B) = P(A|B).P(B)
and also as
P(A ∩ B) = P(B|A).P(A)
Exercise
Exercise
Exercise
Exercise
Ex 4: An editor may use all, some, or none of three possible strategies
to enhance the sales of a book:
a. An expensive prepublication promotion
b. An expensive cover design
c. A bonus for sales representatives who meet predetermined sales
levels
In the past, these three strategies have been applied simultaneously to
only 2% of the company’s books. Twenty percent of the books have
had expensive cover designs, and, of these, 80% have had expensive
prepublication promotion. A rival editor learns that a new book is to
have both an expensive prepublication promotion and an expensive
cover design and now wants to know how likely it is that a bonus
scheme for sales representatives will be introduced. Compute the
probability of interest to the rival editor.
Nguyễn Hoàng Huy Tú Probability
Complement Rule
1.1. Basic Definitions
Addition Rule
2.1. Probability
Conditional Probability
1.3. Probability Rules
Multiplication Rule
1.4. Bayes’ Theorem
Statistical Independence
Statistical Independence
Definition
Let A and B be two events. These events are said to be statistically
independent if and only if
P(A ∩ B) = P(A).P(B)
It follows that
P(A|B) = P(A)(P(B) > 0)
P(B|A) = P(B)(P(A) > 0)
Example
Example 1: (Check by formula) Suppose that women obtain 54% of
all bachelor’s degrees in a particular country and that 20% of all
bachelor’s degrees are in business. Also, 8% of all bachelor’s degrees
go to women majoring in business. Are the events “the bachelor’s
degree holder is a woman” and “the bachelor’s degree is in business”
statistically independent?
Let A denote the event “the bachelor’s degree holder is a woman” and
B denote the event “the bachelor’s degree is in business.” We then
have the following:
P(A) = 0.54, P(B) = 0.20, P(A ∩ B) = 0.08
Since
P(A)P(B) = (0.54)(0.20) = 0.108 ̸= 0.08 = P(A ∩ B)
these events are not independent.
Nguyễn Hoàng Huy Tú Probability
Complement Rule
1.1. Basic Definitions
Addition Rule
2.1. Probability
Conditional Probability
1.3. Probability Rules
Multiplication Rule
1.4. Bayes’ Theorem
Statistical Independence
Example
Exercise
Rule
Let E1 , E2 , . . . En be a system of events which are both mutually
exclusive and collectively exhaustive. Let A be an event. Then
Bayes’ Theorem
Theorem
Let E1 , E2 , . . . En be a system of events which are both mutually
exclusive and collectively exhaustive. Let A be an event. Then
P(A|Ei )P(Ei )
P(Ei |A) =
P(A)
or
P(A|Ei )P(Ei )
P(Ei |A) =
P(E1 )P(A|E1 ) + P(E2 )P(A|E2 ) + . . . + P(En )P(A|En )
In particular,
P(A)P(B|A) P(A)P(B|A)
P(A|B) = =
P(B) P(A)P(B|A) + P(A)P(B|A)
Nguyễn Hoàng Huy Tú Probability
1.1. Basic Definitions
2.1. Probability Total Probability Rule
1.3. Probability Rules Bayes’ Theorem
1.4. Bayes’ Theorem
Exercise
Exercise
Ex 2: Given that 10% of the people who come into the showroom and
talk to a salesperson will purchase a car. To increase the chances of
success, you propose to offer a free dinner with a salesperson. The
project is conducted, and 40% of the people who purchased cars had a
free dinner. In addition, 10% of the people who did not purchase cars
had a free dinner.
a. What is the probability that a person will have a free dinner?
b. What is the probability that a person who accept a free dinner will
purchase a car?
c. What is the probability that a person who does not accept a free
dinner will purchase a car?
Exercise
Exercise
Exercise