From the course: Business Math

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Conditional probabilities and counting cards

Conditional probabilities and counting cards

From the course: Business Math

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Conditional probabilities and counting cards

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- 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…

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