BAN 001 Chapter Notes - Chapter 3.5: Conditional Probability, Sample Space, Mutual Exclusivity
7 Sep 2016
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From our previous lecture we know that the union is of interest when the probability of any one of several events (or outcomes) occurring is required. When we are interested in the probability of a joint occurrence of two or more events we use the intersection. To calculate the probability of joint events we use the multiplication rule. Let"s look at a simple example that we have seen before: Toss a fair coin twice - p(h) = p(t) = 0. 5. Intuitively we know that each outcome has a. Statistically we arrive at this conclusion by multiplying the. Probabilities of the simple events getting a head and getting a tail. P(h,h) = p(h) p(h) = p(h) x p(h) = (0. 5) x (0. 5) = 0. 25. P(t,t) = p(t) p(t) = p(t) x p(t) = (0. 5) x (0. 5) = 0. 25. P(h,t) = p(h) p(t) = p(h) x p(t) = (0. 5) x (0. 5) = 0. 25.
