By:  Neil E. Cotter

Probability

 

 

Basic probability

 

 

Law of Total Probability

 

 

ex 1

 
 
 

 

Ex:            A company has found that a certain fraction of the parts it orders are counterfeit.  That fraction depends on which company the parts were ordered from.  The parts are mixed together in a stockroom, so the selection of parts may be viewed as an experiment in probability.  The following information is known.

A ≡ event that parts selected are from company A

B ≡ event that parts selected are from company B

C ≡ event that parts selected are counterfeit

P(A) = 0.35

P(B) = 0.25

P(C) = 0.10

P(A∩C) = 0.08

P(B∩C) = 0.01

What is the probability of picking a part that is counterfeit and not from either company A or B?  Note that we may write this probability as P(C∩(AB)')

Sol'n:        Since we are calculating the probability of an intersection, we consider using the law of total probability.  To do so, we need a partition of the sample space, S, of all possible outcomes.  We may safely assume that A and B are mutually exclusive, since they are distinct companies.  To complete the partition, we use the rest of S.  That is, we use (AB)'.  Our partition is A, B, and (AB)'.

Venn diagram:

We want the area in C and between A and B in the Venn diagram.  By the law of total probability, we use the following calculation of the probability of C:

P(C) = P(A∩C) + P(B∩C) + P(C∩(AB)')

We know the values of all the terms except the one we are looking for.

0.10 = 0.08 + 0.01 + P(C∩(AB)')

We solve for our unknown value to complete the solution.

P(C∩(AB)') = 0.10 – (0.08 + 0.01) = 0.01