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📚 Statistics with Technology 2e
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4.3 Conditional Probability

Suppose you want to figure out if you should buy a new car. When you first go and look, you find two cars that you like the most. In your mind they are equal, and so each has a 50% chance that you will pick it. Then you start to look at the reviews of the cars and realize that the first car has had 40% of them needing to be repaired in the first year, while the second car only has 10% of the cars needing to be repaired in the first year. You could use this information to help you decide which car you want to actually purchase. Both cars no longer have a 50% chance of being the car you choose. You could actually calculate the probability you will buy each car, which is a conditional probability. You probably wouldn’t do this, but it gives you an example of what a conditional probability is.

Conditional probabilities are probabilities calculated after information is given. This is where you want to find the probability of event A happening after you know that event B has happened. If you know that B has happened, then you don’t need to consider the rest of the sample space. You only need the outcomes that make up event B. Event B becomes the new sample space, which is called the restricted sample space, R. If you always write a restricted sample space when doing conditional probabilities and use this as your sample space, you will have no trouble with conditional probabilities. The notation for conditional probabilities is P(A, given B)=P(A|B). The event following the vertical line is always the restricted sample space.

If you look at the results of Example 7 part d and Example 1 part b, you will notice that you get the same answer. This means that knowing that the first die is a 4 did not change the probability that the sum is a 7. This added knowledge did not help you in any way. It is as if that information was not given at all. However, if you compare Example 7 part b and Example 1 part a, you will notice that they are not the same answer. In this case, knowing that the first die is a 2 did change the probability of getting a sum of 5. In the first case, the events sum of 7 and first die is a 4 are called independent events. In the second case, the events sum of 5 and first die is a 2 are called dependent events.

Events A and B are considered independent events if the fact that one event happens does not change the probability of the other event happening. In other words, events A and B are independent if the fact that B has happened does not affect the probability of event A happening and the fact that A has happened does not affect the probability of event B happening. Otherwise, the two events are dependent. In symbols, A and B are independent if

P ( A | B ) = P ( A )  or  P ( B | A ) = P ( B )

Multiplication Rule:

Two more useful formulas: If two events are dependent, then P(A and B)=P(A)*P(B|A)

If two events are independent, then P(A and B)=P(A)*P(B)

If you solve the first equation for P(B|A), you obtain P(B|A)=P(A and B)P(A), which is a formula to calculate a conditional probability. However, it is easier to find a conditional probability by using the restricted sample space and counting unless the sample space is large.

A big deal has been made about the difference between dependent and independent events while calculating the probability of and compound events. You must multiply the probability of the first event with the conditional probability of the second event.

Why do you care? You need to calculate probabilities when you are performing sampling, as you will learn later. But here is a simplification that can make the calculations a lot easier: when the sample size is very small compared to the population size, you can assume that the conditional probabilities just don't change very much over the sample.

For example, consider acceptance sampling. Suppose there is a big population of parts delivered to you factory, say 12,000 parts. Suppose there are 85 defective parts in the population. You decide to randomly select ten parts, and reject the shipment. What is the probability of rejecting the shipment?

There are many different ways you could reject the shipment. For example, maybe the first three parts are good, one is bad, and the rest are good. Or all ten parts could be bad, or maybe the first five. So many ways to reject! But there is only one way that you’d accept the shipment: if all ten parts are good. That would happen if the first part is good, and the second part is good, and the third part is good, and so on. Since the probability of the second part being good is (slightly) dependent on whether the first part was good, technically you should take this into consideration when you calculate the probability that all ten are good.

The probability of getting the first sampled part good is 120008512000=1191512000. So the probability that all ten being good is 1191512000*1191411999*1191311998**119061199193.1357. If instead you assume that the probability doesn’t change much, you get (1191512000)1093.1382. So as you can see, there is not much difference. So here is the rule: if the sample is very small compared to the size of the population, then you can assume that the probabilities are independent, even though they aren’t technically. By the way, the probability of rejecting the shipment is 10.9314=0.0686=6.86.

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