100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Summary Probability and Statistics for International Business Administration, lecture notes $3.26   Add to cart

Summary

Summary Probability and Statistics for International Business Administration, lecture notes

 94 views  2 purchases
  • Course
  • Institution

Lecture notes of all the Probability lectures given by K. Poortema in BOM (module 2 of IBA at the UT). Includes all the useful formulas and explanations.

Preview 2 out of 8  pages

  • December 14, 2018
  • 8
  • 2018/2019
  • Summary
avatar-seller
Probability for International Business Administration, Lecture 1
Probability and Statistics


11-12-2018, K. Poortema

Probability theory treats only known data (different from statistics, where we also treat
unknown data/models)

When rolling 2 dices, probability of a number on one dice is 1/6. For a number on one dice,
and a number on the other dice is 1/6 * 1/6 = 1/36 (probability for each number is equal for
each dice). A set A ={(1,3), (2,2), (4,3)} has a probability of 3/36 to occur.

A is the set, Ac is the complementary of A à So, all the values that are not within, but
outside A. You can calculate the probability for Ac: P(Ac) = 1 – P(A).

Probability you pick A or B
P(A or B) = P(A) + P(B) – P(A and B)

Sample space S = {all outcomes}
Event A: a subset of S
“certain event” is the largest A you can find, this is S (P(A) = 1)
“impossible event” is the smallest A you can find, noted as Æ, P(Æ) = 0

Intersection, Ç , both P(A) and P(B) occur
Union, È , both P(A), P(B) and, P(A and B)

Two subsets are mutually exclusive (disjoint) if their intersection is empty, P(A and C) = 0

Product rule (conditional probability)
Conditional probability of A given B

𝑃(𝐴 ∩ 𝐵)
𝑃(𝐴|𝐵) =
𝑃(𝐵)

𝑃(𝐴 ∩ 𝐵) = 𝑃(𝐴|𝐵) ∗ 𝑃(𝐵)
𝑃(𝐴 ∩ 𝐵) = 𝑃(𝐵|𝐴) ∗ 𝑃(𝐴)

Conditional probability of B given A

𝑃(𝐵 ∩ 𝐴)
𝑃(𝐵|𝐴) =
𝑃(𝐴)

𝑃(𝐴 ∩ 𝐵) = 𝑃(𝐵|𝐴) ∗ 𝑃(𝐵)


Note the difference of P(B) and P(A|B)

, Product rule for independent events A and B:
𝑃(𝐴 ∩ 𝐵) = 𝑃(𝐴) ∗ 𝑃(𝐵)

If A and B are independent, then:
𝑃(𝐴|𝐵) = 𝑃(𝐴)

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller jorikdegroen. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $3.26. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

64438 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$3.26  2x  sold
  • (0)
  Add to cart