Chapter 8 Flashcards
Permutation
An arrangement of items or events in which ORDER MATTERS
Probability
Number of favorable outcomes / number of total outcomes
Combinations
Arrangement of objects where order doesn’t matter
Fundamental counting principle
The number of ways that a combination of events can occur (tie business example)
if there are p ways to do one thing, and q ways to do another thing, then there are p×q ways to do both things.
Random experiment
Can’t be sure of the outcome
Sample space
Set whose numbers area ll possible outcomes of a random experiment
event
Part of the sample space
Conditional probability
The probability of an event occurring based on a previous event already taking place: P(A|B)
Dependent events
Their outcome depends on previous events
Independent probability
Doesn’t influence another probability
Independent event
When the probability of an event is not affected by the previous event
Conditional Probability formula with independent events
P(B|A)=P(B)
Intersection of A & B
P(B|A)=P(A & B)/P(A)
Compound events
More than 1 possible outcome, finding the sum of all probabilities and removing the overlapping ones
Exclusive compound event
Multiple events DO NOT overlap
Inclusive compound event
Multiple events overlap
formula for compound event
P(C)=P(A)+P(B)-P(A&B)
probability distribution
A function or rule that assigns probabilities of occurrences to each possible outcome of a random event
binomial distribution
used to model the probability of obtaining one of two outcomes, a certain number of times (K) out of a fixed number of trials (N) of a random event
Expected / success
P
fail
1-P
Rules for binomial distribution
- Only 2 mutually exclusive outcomes
- fixed number of repeated trials
- each trial is an independent event
- probability of success is fixed
Calculating binomial distribution
- plug in correct values
- find binomial coefficient
- evaluate the binomial probability formula
Binomial coefficient formula
n/x = n!/x!(n-x)!
Binomial probability formula
p= (N under it X)p^x (1-p)^n-x
