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This module introduces the multiplication and addition rules used when calculating probabilities.

The multiplication rule

If A and B are two events defined on a sample space , then: P(A AND B) = P(B) P(A|B) .

This rule may also be written as : P(A|B)= P(A AND B) P(B)

(The probability of A given B equals the probability of A and B divided by the probability of B .)

If A and B are independent , then P(A|B) = P(A) . Then P(A AND B) = P(A|B) P(B) becomes P(A AND B) = P(A) P(B) .

The addition rule

If A and B are defined on a sample space, then: P(A OR B) = P(A) + P(B) - P(A AND B) .

If A and B are mutually exclusive , then P(A AND B) = 0 . Then P(A OR B) = P(A) + P(B) - P(A AND B) becomes P(A OR B) = P(A) + P(B) .

Klaus is trying to choose where to go on vacation. His two choices are: A = New Zealand and B = Alaska

  • Klaus can only afford one vacation. The probability that he chooses A is P(A) = 0.6 and the probability that he chooses B is P(B) = 0.35 .
  • P(A and B) = 0 because Klaus can only afford to take one vacation
  • Therefore, the probability that he chooses either New Zealand or Alaska is P(A OR B) = P(A) + P(B) = 0.6 + 0.35 = 0.95 . Note that the probability that he does not choose to go anywhere on vacation must be 0.05 .
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Carlos plays college soccer. He makes a goal 65% of the time he shoots. Carlos is going to attempt two goals in a row in the next game.

A = the event Carlos is successful on his first attempt. P(A) = 0.65 . B = the event Carlos is successful on his second attempt. P(B) = 0.65 . Carlos tends to shoot in streaks. The probability that he makes the second goal GIVEN that he made the first goal is 0.90.

What is the probability that he makes both goals?

The problem is asking you to find P(A AND B) = P(B AND A) . Since P(B|A) = 0.90 :

P(B AND A) = P(B|A) P(A)  =  0.90 * 0.65 = 0.585

Carlos makes the first and second goals with probability 0.585.

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What is the probability that Carlos makes either the first goal or the second goal?

The problem is asking you to find P(A OR B) .

P(A OR B) = P(A) + P(B) - P(A AND B) = 0.65 + 0.65 - 0.585 = 0.715

Carlos makes either the first goal or the second goal with probability 0.715.

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Are A and B independent?

No, they are not, because P(B AND A)  =  0.585 .

P(B)  ⋅  P(A)  =  (0.65)  ⋅  (0.65)  =  0.423
0.423  ≠  0.585  =  P(B AND A)

So, P(B AND A) is not equal to P(B) P(A) .

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Are A and B mutually exclusive?

No, they are not because P(A and B) = 0.585.

To be mutually exclusive, P(A AND B) must equal 0.

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A community swim team has 150 members. Seventy-five of the members are advanced swimmers. Forty-seven of the members are intermediate swimmers. The remainder are novice swimmers. Forty of the advanced swimmers practice 4 times a week. Thirty of the intermediate swimmers practice 4 times a week. Ten of the novice swimmers practice 4 times a week. Suppose one member of the swim team is randomly chosen. Answer the questions (Verify the answers):

What is the probability that the member is a novice swimmer?

28 150

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What is the probability that the member practices 4 times a week?

80 150

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What is the probability that the member is an advanced swimmer and practices 4 times a week?

40 150

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What is the probability that a member is an advanced swimmer and an intermediate swimmer? Are being an advanced swimmer and an intermediate swimmer mutually exclusive? Why or why not?

P(advanced AND intermediate)  =  0 , so these are mutually exclusive events. A swimmer cannot be an advanced swimmer and an intermediate swimmer at the same time.

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Are being a novice swimmer and practicing 4 times a week independent events? Why or why not?

No, these are not independent events.

P(novice AND practices 4 times per week) = 0.0667
P(novice) P(practices 4 times per week) = 0.0996
0.0667 0.0996
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Studies show that, if she lives to be 90, about 1 woman in 7 (approximately 14.3%) will develop breast cancer. Suppose that of those women who develop breast cancer, a test is negative 2% of the time. Also suppose that in the general population of women, the test for breast cancer is negative about 85% of the time. Let B = woman develops breast cancer and let N = tests negative. Suppose one woman is selected at random.

What is the probability that the woman develops breast cancer? What is the probability that woman tests negative?

P(B) = 0.143 ; P(N) = 0.85

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Given that the woman has breast cancer, what is the probability that she tests negative?

P(N|B) = 0.02

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What is the probability that the woman has breast cancer AND tests negative?

P(B AND N) = P(B) ⋅ P(N|B) = ( 0.143 )  ⋅  ( 0.02 ) = 0.0029

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What is the probability that the woman has breast cancer or tests negative?

P(B OR N) = P(B) + P(N) - P(B AND N) = 0.143 + 0.85 - 0.0029 = 0.9901

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Are having breast cancer and testing negative independent events?

No. P(N) = 0.85 ; P(N|B) = 0.02 . So, P(N|B) does not equal P(N)

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Are having breast cancer and testing negative mutually exclusive?

No. P(B AND N) = 0.0029 . For B and N to be mutually exclusive, P(B AND N) must be 0.

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Questions & Answers

it is the relatively stable flow of income
Chidubem Reply
what is circular flow of income
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branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
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is gdp a reliable measurement of wealth
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introduction to econometrics
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Tom
Why is unemployment rate never zero at full employment?
Priyanka Reply
bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
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discus major problems of macroeconomics
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what is the problem of macroeconomics
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Economic growth Stable prices and low unemployment
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what is inflation
Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
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how to calculate actual output?
Chisomo
how to calculate the equilibrium income
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Criteria for determining money supply
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who we can define macroeconomics in one line
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Aggregate demand
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C=k100 +9y and i=k50.calculate the equilibrium level of output
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A unit of account is something that can be used to value goods and services and make calculations
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I want to know how can we define macroeconomics in one line
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it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
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hi can someone help me on this question If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output? discuss your answer using appropriate graph.
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if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
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Source:  OpenStax, Collaborative statistics. OpenStax CNX. Jul 03, 2012 Download for free at http://cnx.org/content/col10522/1.40
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