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Lind 18e Chap005
Lind 18e Chap005
Lind 18e Chap005
Chapter 5
5-1 Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
Learning Objectives
LO5-1 Define the terms probability, experiment, event, and
outcome
LO5-2 Assign probabilities using a classical, empirical, or
subjective approach
LO5-3 Calculate probabilities using the rules of addition
LO5-4 Calculate probabilities using the rules of
multiplication
LO5-5 Compute probabilities using a contingency table
LO5-6 Calculate probabilities using Bayes’ theorem
LO5-7 Determine the number of outcomes using
principles of counting
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prior written consent of McGraw-Hill Education.
Probability
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without the prior written consent of McGraw-Hill Education.
Probability (2 of 2)
EXPERIMENT A process that leads to the occurrence of one and only
one of several possible results.
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without the prior written consent of McGraw-Hill Education.
Classical Probability
The classical definition of probability applies when there
are n equally likely outcomes to an experiment
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prior written consent of McGraw-Hill Education.
Empirical Probability
The empirical definition occurs when the number of
times an event happens is divided by the number of
outcomes
EMPIRICAL PROBABILITY The probability of an event happening is the
fraction of the time similar events happened in the past.
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prior written consent of McGraw-Hill Education.
Subjective Probability
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prior written consent of McGraw-Hill Education.
Summary of Approaches to Probability
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Rules of Addition
The rules of addition refer to the probability that any two
or more events can occur
The special rule of addition is used when the events are
mutually exclusive
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prior written consent of McGraw-Hill Education.
Rules of Addition Example
A machine fills plastic bags with a mixture of beans, broccoli, and other
vegetables. Most of the bags contain the correct weight, but because of
the variation in the size of the beans and other vegetables, a package
might be underweight or overweight. A check of 4,000 packages filled in
the past month revealed:
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prior written consent of McGraw-Hill Education.
Complement Rule
The complement rule is used to determine the
probability of an event happening by subtracting the
probability of an event not happening
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prior written consent of McGraw-Hill Education.
General Rule of Addition
The general rule of addition is used when the events are
not mutually exclusive
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prior written consent of McGraw-Hill Education.
General Rule of Addition Example
A sample of 200 tourists in Florida shows 120 went to Disney,
100 went to Busch Gardens, and 60 visited both.
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without the prior written consent of McGraw-Hill Education.
Special Rule of Multiplication
The rules of multiplication are applied when two or more
events occur simultaneously
The special rule of multiplication refers to events that are
independent
INDEPENDENCE The occurrence of one event has no effect on the
probability of the occurrence of another event.
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prior written consent of McGraw-Hill Education.
General Rule of Multiplication Example
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without the prior written consent of McGraw-Hill Education.
Contingency Tables
One hundred fifty adults were asked if they were older than
50 years of age and the number of Facebook accounts they
used. The following table summarizes the results.
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without the prior written consent of McGraw-Hill Education.
Tree Diagrams
A tree diagram is a visual that is helpful in organizing and
calculating probabilities for problems with several stages
Each stage of the problem is represented by a branch of
the tree
Label the branches with the probabilities
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prior written consent of McGraw-Hill Education.
Tree Diagram Example
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without the prior written consent of McGraw-Hill Education.
Bayes’ Theorem
Bayes’ Theorem is a method of revising a probability, given
that additional information is obtained
For two mutually exclusive and collectively exhaustive
events
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prior written consent of McGraw-Hill Education.
Bayes’ Theorem Example
Suppose 5% of the population of Umen have a disease. A1 represents the part
of the population that has the disease and A 2 represents those who do not.
Let B denote a test result that shows the disease is present.
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Bayes’ Theorem Example continued
Randomly select an individual and perform the test.The test
results indicate the disease is present.What is the
probability the test is correct?
Use Bayes’ theorem to solve.
𝑃 𝐴1 𝑃(𝐵|𝐴1) .05 (.90) .0450
P(A1|B) = = = = .24
𝑃 𝐴1 𝑃 𝐵 𝐴1 +𝑃 𝐴2 𝑃(𝐵|𝐴2) .05 .90)+ .95 (.15) .1875
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prior written consent of McGraw-Hill Education.
Multiplication Formula
The multiplication formula states that if there are n ways
of doing one thing, and m ways of doing another thing,
then there are m*n ways of doing both
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prior written consent of McGraw-Hill Education.
Multiplication Formula Example
When the American Red Cross receives a blood donation, the blood is
analyzed and classified by group and Rh factor.There are four blood groups:
A, B, AB, and O.The Rh factor can be either positive or negative. How many
different blood types are there?
Total possible arrangements = (m) (n) = (4) (2) = 8
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prior written consent of McGraw-Hill Education.
The Permutation Formula
Another counting formula used to determine a total
number of outcomes
PERMUTATION Any arrangement of r objects selected from a single group
of n possible objects.
There are three electronic parts to be assembled, so n=3. Because all three
are to be inserted into the plug-in component, r=3.
3 P3 = = =6
Label the parts A, B, and C ABC BAC CAB ACB BCA CBA
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prior written consent of McGraw-Hill Education.
The Combination Formula
Another counting formula useful in determining the total
number of outcomes
A combination is an arrangement where the order of the
objects selected is not important
The Grand 16 movie theater uses teams of three employees to work the concession
stand each evening.There are seven employees available to work. How many different
teams can be scheduled?
𝑛! 7! 7!
7 C3 = 𝑟! 𝑛−𝑟 !
=
3! 7−3 !
=
3!4!
= 35
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prior written consent of McGraw-Hill Education.
Chapter 5 Practice Problems
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Question 5 LO5-2
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prior written consent of McGraw-Hill Education.
Question 13 LO5-3
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prior written consent of McGraw-Hill Education.
Question 25 LO5-4
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prior written consent of McGraw-Hill Education.
Question 29 LO5-5
Each salesperson at Puchett, Sheets, and Hogan Insurance Agency is
rated either below average, average, or above average with respect
to sales ability. Each salesperson also is rated with respect to his or
her potential for advancement—either fair, good, or excellent. These
traits for the 500 salespeople were cross-classified into the
following table.
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the prior written consent of McGraw-Hill Education.
Question 43 LO5-7
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prior written consent of McGraw-Hill Education.