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pp.79-86

# pp.79-86 - 79 Rule of Conditional Probability P A B P A B =...

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Rule of Conditional Probability : ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 P A B P A B = also P B P A B P B A = P A Example : Jacobs & Martin Test Prep offers a course that prepares individuals for the CPA exam. Stewart and Crane Agency does the same, though they have not been in business for as long as J&M. The success record for each of the two businesses (in terms of CPA exams) is summarized in the table below: Failed Passed Total J&M 240 1360 1600 S&C 80 320 400 Total 320 1680 2000 P(J&M) = P(S&C) = P(Failed) = P(Passed) = ( 29 & J M = P Failure ( 29 & S C = P Failure 79

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( 29 P J&MFailed = ( 29 P S&C Failed = ( 29 & J M P Failed = ( 29 & S C P Failed = Independent Events . Two events, A and B, are independent if the probability of event A does not change whether or not B occurs. Similarly, if A and B are independent, the probability of event B does not change whether or not A occurs. That is, ( 29 P A B =P(A) P(B A)=P(B) Example : A=get H on first toss of a coin B=get H on second toss of a coin ( 29 P A B =P(A)=0.5 P(B A)=P(B)=0.5 80
Back to the test prep example. Suppose we would

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pp.79-86 - 79 Rule of Conditional Probability P A B P A B =...

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