Explore how conditional probabilities are often more important than overall probabilities.
- Probability is the chance that an event will happen.…Probability is often stated in percentage terms.…For example, there's a 30% chance that it will rain.…This can be interpreted as follows,…for every 100 days for which the weather forecast…has a 30% chance of rain…it should actually rain on about 30 of those days.…We usually think of probability as being fixed…based on the characteristics of the population…at which we are looking.…For example, for a gambler, what is the probability…that a card dealt from a deck will be a 10 or a face card?…For a salesperson, what is the probability…that a sales prospect will ultimately make a purchase?…For an account manager, what is the probability…that a person to whom Nordstrom sells on credit…will never pay?…For an instructor, what is the probability…that a student will score 90% or above on a midterm exam?…Let's look at each one of these examples…to learn that in many cases the conditional probability…is more important than the overall probability.…
A conditional probability is a revised probability…
In this course, join accounting professors Jim and Kay Stice as they help you discover how to leverage the power of numbers to approach businesses problems and make everyday decisions. They explore the power of ratios and percentages, how to monitor and evaluate your budget, how to forecast the timing and amount of a business loan, and much more.
LinkedIn Learning (Lynda.com) is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- Explain the rule of 72.
- Determine net income based on wholesale and retail costs.
- Apply the appropriate methods to convert fractions to percentages.
- Define “consumer price index.”
- Identify the difference between mean and median.
- Recall how to calculate conditional and unconditional probability.