This preview shows pages 1–7. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: 1 Chapter 7 Probability Basics 2 Chapter 7 Introduction to Probability Basics Learning Objectives Probability Theory and Concepts Use of probability to model simple uncertain situation Discrete probability Distribution Continuous Probability Distribution 3 Chapter 7 (Probability Basics) Probabilities must satisfy the following: 1) Probabilities must lie between 0 and 1 (0<=P<=1) 2) Probabilities must add up P(A 1 or A 2 )= P(A 1 ) + P (A 2 ) if A 1 and A 2 cant both happen 3) Total probability must equal 1 4 Probability Basics Venn Diagrams More Probability Formulas Conditional Probability P(AB)=P(A and B)/ P(B) Independence P(A i B j ) = P(A i ) Complements P(B) = 1P(B) 5 Probability Basics Total Probability of an Event P(A) =P(A and B)+P(A and B) =P(AB) P(B) + P(AB) P(B) Venn Diagram for total probability of an event 6 Probability Basics Bayes Theorem : P(BA) = P(AB) P(B) / P(AB) P(B) Probability Distribution Random Variable Use of capital letter to present uncertain quantities 7...
View
Full
Document
This note was uploaded on 12/04/2011 for the course BUSINESS 500 taught by Professor John during the Spring '11 term at Kansas.
 Spring '11
 John

Click to edit the document details