Friday, 19 July 2013

Insight on Probability- 18th July 2013

The class on 18th July 2013 kicked off with the introduction to probability. Three methods of probability are:
  •   Ratio Chance
  •  Percentage Chance
  •  Probability


Percentage Chance

Another way to talk about probability is by using percents. Percent means "out of 100." Instead of describing a probability as 1 out of 4, we say 25%. Think of it this way: 25 out of 100 is one quarter of 100, just as 1 is one quarter of 4.
 
  • Turning left and turning right are Mutually Exclusive (you can't do both at the same time)
  • Tossing a coin: Heads and Tails are Mutually Exclusive
  • Cards: Kings and Aces are Mutually Exclusive



1.      "1 out of 4" = 1/4
2.      Divide the top number by the bottom number 1 ÷ 4 = 0.25
3.      Then, move the decimal 2 places to the right and add the percent sign
0.25 = 25%


Probability
Probability is the chance that a specific event will happen. Measuring probability helps us understand everything from health risks to weather reports to baseball.

For example:
The referee at a basketball game tosses a coin to decide which team starts. Your team picks “heads.” You've got a 1 out of 2 chance of winning the toss, since the coin can land 1 of 2 ways (either heads or tails).

 3 Approaches

The three main approaches used for probability are as follows:

1.      A Priori (prior information)
Probability calculated by logically examining existing information. A priori probability can most easily be described as making a conclusion based upon deductive reasoning rather than research or calculation. The largest drawback to this method of defining probabilities is that it can only be applied to a finite set of events.

For example:
Consider how the price of a share can change. Its price can increase, decrease or remain the same. Therefore, according to a priori probability, we can assume that there is a 1-in-3, or 33%, chance of one of the outcomes occurring (all else remaining equal).

2.      Empirical (Information Collected)
Empirical approach is a method that determines probability from data on actual experiments in order to determine approximate probabilities. Under this method probability is defined as the frequency of occurrence of an event N (A), to the number of trials in the experiment, N. This is represented as P (A) = N (A)/N. It may be noted that the probability, as defined above, is only a ratio of two numbers, in which the numerator N (A) is the number of favorable cases and N is the number of possible outcome satisfying certain conditions.

In other words, imagine tossing the die 100 times, 1000 times, 10,000 times, ... . Each time we expect to get a better and better approximation to the true probability of the event A. The mathematical way of describing this is that the true probability is the limit of the approximations, as the number of tosses "approaches infinity

3.      Subjective (Judgement)
A probability derived from an individual's personal judgment about whether a specific outcome is likely to occur. Subjective probabilities contain no formal calculations and only reflect the subject's opinions and past experience.

       The sample space is an exhaustive list of all the possible outcomes of an experiment. Each possible result of such a study is represented by one and only one point in the sample space, which is usuall denoted by S.

Examples:

Experiment Tossing a coin:
Sample space S = {Heads,Tails}
Experiment Measuring the height (cms) of a girl on her first day at school:
Sample space S = the set of all possible real numbers



Venn diagrams

An illustration that uses overlapping or non-overlapping circles to show the relationship between finite groups of things. The circles overlap, items have a specified something in common. Where the circles do not overlap, the items do not have a specified something in common

Venn Diagram with two variables


Venn Diagram with three variables





Venn Diagrams with four variables
 










3 Event Properties

1.      Mutually Exclusive Events
2.      Independent Events
3.      Dependent Events

            Mutually Exclusive Events

Events that can’t happen at the same time.

Example:

  • Turning left and turning right are Mutually Exclusive (you can't do both at the same time)
  • Tossing a coin: Heads and Tails are Mutually Exclusive
  • Cards: Kings and Aces are Mutually Exclusive
Independent Events

Events that are not affected by the occurrence of the previous events are called independent events.

For Example:

Two separate tosses of a fair coin are independent events. The result of the first toss has no effect on the probability of heads or tails on the second toss.


Dependent Events

If the result of one event is affected by the result of another event, the events are said to be dependent events


For Example:

A drawer contains 3 red paperclips, 4 green paperclips, and 5 blue paperclips.  One paperclip is taken from the drawer and is not replaced.  Another paperclip is taken from the drawer.  Because the first paper clip is not replaced, the sample space of the second event is changed.  The sample space of the first event is 12 paperclips, but the sample space of the second event is now 11 paperclips.  The events are dependent.


3 Laws of Probability

Addition Law

When two events, A and B, are mutually exclusive, the probability that A or B will occur is the sum of the probability of each event.

P(A or B) = P(A) + P(B)

Conditional Law

Probability of an event or outcome based on the occurrence of a previous event or outcome. Conditional probability is calculated by multiplying the probability of the preceding event by the updated probability of the succeeding event

The conditional probability of B occurring given that event A has occurred is written P(B/A).
              P(B/A) = P(A∩B)/P(A)

Multiplication Law

This law for probabilities states that if A and B are independent events then
P(A ∩ B)=P(A)×P(B),
and, in the case of n independent eventsA1A2,…, An,
P(A1 ∩ A2 ∩∩ An)=P(A1)×P(A2)××P(An).

The class concluded with this topic.

Blog Written by: 

Priya Jain (2013210)

Team Members:

Neeraj Garg
Pallavi Gupta
Piyush
Prerna Bansal
Priya Jain









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