QMB-210 Lecture Notes - Lecture 10: Posterior Probability, Prior Probability

• School: University of Tampa
• Department: Quantitative Methods in Business
• Course: QMB-210
• Professor: Shaista Nisar

Document Summary

Point a, given that point b has happened divide over point b. A conditional probability is also known as a posterior probability, which is a revision of the prior probability using additional information. Two events are considered independent of one another if the occurrence of one event has no impact on the occurrence of the other event. If the occurrence of one event affects the occurrence of another event, the events are considered dependent. Formula for determining if events a and b are independent. If p(cid:894)a|b(cid:895) p(a) then events a and b are not independent. If they are not the same, then a and b are dependent. If they are the same, they are independent. Determine the following probabilities (always write in decimals!: p(a) = 20/50(total events) = 0. 40, p(b) = 30/50 = 0. 60, p(c) = 15/50 = 0. 30, p(d) = 25/50 = 0. 50, p(e) = 10/50 = 0. 20.