CAS MA 115 Lecture Notes - Lecture 5: Sample Space, Regional Policy Of The European Union, Conditional Probability

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CHAPTER 5 PROBABILITY
Section 5.1 Probability Rules
Objective 1 Introduction to Probability
Probability a measure of the likelihood of a random phenomenon/chance/behavior
occurring
o Meant to describe the long-term proportion that a certain outcome will occur in
situations where there is short-term uncertainty
o Probability deals with experiments that yield random short-term outcomes yet
reveal long-term predictability
o Essentially, the long-term proportion in which a certain outcome is observed is
the probability of that outcome
Law of Large Numbers as the number of repetitions of a probability experiment
increases, the proportion with which a certain outcome is observed gets closer to the
probability of the outcome.
Experiment a repetition of the same procedure in which the results are uncertain
Sample Space (of a probability experiment) (S) the collection of all possible outcomes
Event (E) any collection of outcomes from a probability experiment (ex: rolling a six-
sided die)
o Can have multiple outcomes
o Simple Events (ei) events with one outcome (ex: flipping a two-sided coin)
ex: consider the probability of having two children. Identify the outcomes of the
probability experiment, determine the sample space and define the event E = having one
boy
o e1 = boy + boy, e2 = boy + girl, e3 = girl + boy, e4 = girl + girl
o S = {(boy, boy), (boy, girl), (girl, boy), (girl, girl)}
o E = {(boy, girl), (girl, boy)}
Objective 2: Apply the Rules of Probabilities
Rules of Probability:
o 1. The probability of any event P(E) a positive number that must be greater than
or equal to 0 and less than or equal to 1
0 ≤ P(E) ≤ 1
Probability of 1 = 100% chance of occurring
Probability of 0 = 0% chance of occurring
o 2. The sum of the probabilities of all outcomes must equal 1.
o If the sample space S = {E1, E2,…En} then P(E1) + P(E2) +… P(En) = 1
Probability Model lists the possible outcomes of a probability experiment as well as
each outcome while satisfying both rules of probability
o If an event is impossible, the probability of the event is 0
o If an event is certain, the probability of the event is 1
o If an event has a low probability of occurring (less than 5%), it is an unusual
event
o ex: verify the probability model of M&Ms
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Rule 1 is satisfied, because all probabilities are between 0 and 1.
Rule 2 is satisfied, because 0.12 + 0.15 + 0.12 + 0.23 + 0.23 + 0.15 = 1
Objective 3: Compute and Interpret Probabilities Using the Empirical Method
Using the Empirical Method
The probability of an event is approximately the number of times the event is observed
divided by the number of repetitions of the experiment
o P(E) relative frequency of E
o P(E) = 

ex: build a probability model of the throws of the pig, calculate and interpret how many
throws of the pig would result in a side w/ dot and a leaning jowler
o Side w/ No Dot = 1344/3939 = 0.341, Side w/ Dot = 0.329, Razorback = 0.195,
Trotter = 0.093, Snouter = 0.035, Leaning Jowler = 0.008
o The probability a throw results in a “side w/ dot” is 0.329. In 1000 throws of the
pig, we would expect about 329 to land on a “side w/ dot”. The probability a
throw results in a “leaning Jowler” would be unusual. In 1000 throws of the pig,
we would expect to obtain the “leaning Jowler” about 8 times.
Objective 4: Compute and Interpret Probabilities Using the Classical Method
Equally Likely Outcomes - a term used to describe an experiment when each simple
event has the same probability of occurring (ex: a coin flip)
o The classical method of computing probability requires equally likely outcomes
o This is usually assumed in most experiments
Using the Classical Method
o If an experiment has ’n’ equally likely outcomes and if the number of ways the
event can occur is ‘m’, then…
P(E) =
= 

o So, if S is the sample space of this experiment,
P(E) = 
where N(E) is the number of outcomes in an event while N(S)
is the number of outcomes in the sample space
ex: a M&M is randomly selected. What is the probability it is blue? Yellow?
o N(S) ~total amount of M&Ms in bag~ = 30
o P(yellow) = N(yellow)/N(S) = 6/30 = 0.2
o P(blue) = N(blue)/N(S) = 2/30 = 0.067
o Since P(yellow) = 6/30 and P(blue) = 2/30, selecting a yellow is three times as
likely as selecting a blue.
Objective 5: Recognize and Interpret Subjective Probabilities
Subjective Probability (of an outcome) a probability obtained on the basis of personal
judgement
o ex: an economist who predicts there is a 20% chance of recession next year
Section 5.2 The Addition Rule and Complements
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Objective 1: Use the Addition Rule for Disjoint Events
Disjoint/Mutually Exclusive Events events that have no outcomes in common
o ex: when rolling a pair of dice and (E = the event of rolling an even number while
F = the event of rolling an odd number) E and F are disjoint because there is no
outcome that can be in both events (no number can be both even and odd)
Objective 2: Use the General Addition Rule
If E and F are disjoint (mutually exclusive) events, then P(E or F) = P(E) + P(F)
o ***or can mean either or both
The addition rule can be extended to more than two disjointed events
o If E, F, G, . . . each have no outcomes in common (they are pairwise disjoint),
then P(E or F or G) = P(E) + P(F) + P(G)
If E and F are conjoined (overlapping) events, then P(E or F) = P(E) + P(F) P(E and F)
o ***and means both
o ex: if a pair of dice are thrown and E = the first die is a two while F = the sum of
the dice is less than or equal to 5. Find P(E or F) using the general addition rule.
P(E) = 
 = 6/36 = 1/6
P(E) = 
 = 10/36 = 5/18
P(E and F) = 
 = 3/36 = 1/12
P(E or F) = P(E) + P(F) - P(E and F) = 6/36 + 10/36 - 3/36 = 13/36
Objective 3: Compute the Probability of an Event Using the Complement Rule
Complement of an Event (EC) all the outcomes in a sample space that are not outcomes
in event E
o ex: if E = the first die is a two, then EC = the first die is anything but a two
Important to note that E and EC are mutually exclusive
o P(E or EC) = P(E) + P(EC) = 1
o P(EC) = 1 P(E)
Important to note that E and EC are mutually exclusive
ex: 31.6% of American households have a dog. What is the probability that a randomly
selected household does not have a dog?
o P(does not own a dog) = 1 - P(own a dog) = 1 - 31.6% = 0.684
ex: roll two dice at random. What is the probability that at least one roll is a 1?
o E = (at least one roll is 1). Instead of finding P(E) we find the probability of the
opposite EC = neither roll is a 1
o P(E) = 1 - P(EC) = 1 - 25/36 = 11/36
Section 5.3 Independence and the Multiplication Rule
Objective 1: Identify Independent Events
Independent Events when event E does not affect the probability of event F (ex:
conjoined events)
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Document Summary

Objective 2: apply the rules of probabilities: rules of probability, 1. Trotter = 0. 093, snouter = 0. 035, leaning jowler = 0. 008: the probability a throw results in a side w/ dot is 0. 329. In 1000 throws of the pig, we would expect about 329 to land on a side w/ dot . The probability a throw results in a leaning jowler would be unusual. In 1000 throws of the pig, we would expect to obtain the leaning jowler about 8 times. Objective 5: recognize and interpret subjective probabilities: subjective probability (of an outcome) a probability obtained on the basis of personal judgement, ex: an economist who predicts there is a 20% chance of recession next year. Section 5. 2 the addition rule and complements. Objective 1: use the addition rule for disjoint events: disjoint/mutually exclusive events events that have no outcomes in common, ex: when rolling a pair of dice and (e = the event of rolling an even number while.

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