EC255 Lecture Notes - Lecture 4: Conditional Probability, Bayes Estimator, 5,6,7,8
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Union of events the union of events a and b is the event containing all outcomes that are in a or b or both: a = {1,4,7,9, b = {2,3,4,5,6} therefore, a u b = {1,2,3,4,5,6,7,8,9} *if event a and event b are both independent and mutually exclusive, then p(a) = p(b) = 0. Learning objectives: understand the different ways of assigning probability, understand and apply marginal, union, joint, and conditional probabilities, select the appropriate law of probability to solve problems, solve problems using the laws of probability. Four laws of probability laws help us calculate probability of more complex events from probability of simpler events law of addition law of conditional probability law of multiplication: bayes" rule. P(e2) > 0 i. e. of the cars on a used car lot: 70% have air conditioning, 40% have an mp3 player, 20% of the cars have both.
