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Graded Homework. P. 163, #29 P. 170, #35, 37. Graded Homework, cont. P. 163, #29 U. Of Pennsylvania 1,033 admitted early (E) 854 rejected outright (R) 964 deferred (D) Typically 18% of deferred early admission are admitted in the regular admission process (173.5)

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Graded homework
Graded Homework

P. 163, #29

P. 170, #35, 37


Graded homework cont
Graded Homework, cont.

  • P. 163, #29

  • U. Of Pennsylvania

  • 1,033 admitted early (E)

  • 854 rejected outright (R)

  • 964 deferred (D)

  • Typically 18% of deferred early admission are admitted in the regular admission process (173.5)

  • Total number of students admitted = 2,375


Graded homework cont1
Graded Homework, cont.

P(E) = 1033/2851 = 0.362

P(R) = 854/2851 = 0.300

P(D) = 964/2851 = 0.338

Yes, a student cannot be both admitted and deferred, so P(E∩D)=0

1033/2375 = 0.435

1033/2851 + (964/2851)(.18) = 0.423



Graded homework cont3
Graded Homework, cont.

P. 170, 35

P(Manager|Female) = 0.17/0.46 = 0.37

P(Precision production|Male) = 0.11/0.54 = 0.20

No, P(Manager|Female) = 0.37, P(Manager) = 0.34


Graded homework cont4
Graded Homework, cont.

P. 170, 37

P(PC) = .37 P(Y) = .14

P(Y|PC) = .19 P(O|PC) = .81

P(PC|Y) = P(Y ∩ PC)/P(Y) = [P(PC)P(Y|PC)]/P(Y) = [(.37)(.19)]/(.14) = 0.5

P(PC|O) = P(O ∩ PC)/P(O) = [P(PC)P(O|PC)]/P(O) = [(.37)(.81)]/(.86) = 0.35

People under 24 years old are more likely to use credit cards.

Yes, otherwise they can’t establish a credit history and the companies want customers who will make heavy use of the cards. They could put strict limits on the maximum balance for the card.


Multiplication law
Multiplication Law

P(A ∩ B) = P(B)P(A|B)

or

P(A ∩ B) = P(A)P(B|A)


Multiplication rule cont
Multiplication Rule, cont.

If events A and B are independent then P(A|B) = P(A)P(B). In this special case the multiplication rule reduces from:

P(A ∩ B) = P(B)P(A|B)

to:

P(A ∩ B) = P(B)P(A)


Tree diagram
Tree Diagram

Assume we take the four aces out of a deck of cards and we draw twice with replacement:

Are A and B statistically independent in this case?


Sampling and statistical independence
Sampling and Statistical Independence

If we sample without replacement the outcomes will not be statistically independent.

However, if we are drawing from a large population the change in probability will be so small we can treat the draws as being statistically independent.


Bayes theorem
Bayes’ Theorem

A technique used to modify a probability given additional information.


Bayes theorem cont
Bayes’ Theorem, cont.

Assume that 10% of the population has a disease. Assume there is a test to see if someone has the disease but it is not very accurate.


Bayes theorem cont1
Bayes’ Theorem, cont.

Assume we want to calculate the probability that someone has the disease if the test says they have the disease.


Bayes theorem cont2
Bayes’ Theorem, cont.

.08

.02

.27

.63

A1 = Has the disease

B = Test says the patient has the disease

P(A1) = .1 P(A2) = .9

P(B|A1) = .8 P(B|A2) = .3


Bayes theorem cont3
Bayes’ Theorem, cont.


Bayes theorem cont4
Bayes’ Theorem, cont.


Practice
Practice

Assume that 40% of a company’s parts are produced in Boston and 60% are produced in Chicago. Also assume that 20% of the parts produced in Boston are defective, and 10% of the parts produced in Chicago are bad.

A randomly chosen part is defective. Use Bayes Theorem to find the probability the part came from Boston.


Bayes theorem cont5
Bayes’ Theorem, cont.


Bayes theorem cont6
Bayes’ Theorem, cont.

.08

.32

.06

.54

A1 = Boston

B = Part is defective

P(A1) = .4 P(A2) = .6

P(B|A1) = .2 P(B|A2) = .1


Bayes theorem cont7
Bayes’ Theorem, cont.


Bayes theorem cont8
Bayes’ Theorem, cont.


Counting rules
Counting Rules

  • Number of possible outcomes

  • Combinations

  • Permutations


Number of possible outcomes
Number of Possible Outcomes

Given k steps (or rounds) in an experiment and ni possible outcomes at step i, the total number of possible outcomes is:

(n1) (n2)…(nk)


Number of possible outcomes cont
Number of Possible Outcomes, cont.

  • Assume a diner can choose:

  • Either soup or salad

  • One of three main dishes (beef, chicken or vegetarian)

  • Either potatoes or beans

  • How many possible meals are there?

  • (2)(3)(2) = 12



Number of possible outcomes cont2
Number of Possible Outcomes, cont.

  • Assume car buyer can choose:

  • automatic or standard transmission

  • 6 different colors

  • 3 body styles

  • 4 different accessory packages

  • How many possible different outcomes are there?

  • (2)(6)(3)(4) = 144


Factorials
Factorials

N! = (N)(N-1)(N-2)…(2)(1)

5! = (5)(4)(3)(2)(1) = 120

What is the value of 4! ?

(4)(3)(2)(1) = 24

What is the value of 5!/3! ?

[(5)(4)(3)(2)(1)]/[(3)(2)(1)] = (5)(4) = 20

By definition 0! = 1


Permutations
Permutations

The number of permutations of N objects taken n at a time:


Permutations cont
Permutations, cont.

Assume a broker is going to pick 3 stocks from a pool of 10 stocks. Also assume he will invest 60% of his money in one stock, 30% in another, and 10% in another. How many portfolios can be constructed?


Combinations
Combinations

The number of combinations of N objects taken n at a time:


Combinations cont
Combinations, cont.

A bank is constructing a bond based on mortgages. It is going to base the bond from four mortgages, it has ten mortgages to choose from. How many ways can the bond be structured?


Practice1
Practice

Three employees will be chosen from an office of 8 workers for a committee to evaluate a new production technique. How many possible committees could be formed?

Assume a club has 5 members and they are going to elect a president, treasurer, and secretary. How many ways can the offices be filled?

A magazine is going to recommend two of ten products to its readers. It will identify the rankings of the two products that are selected. How many potential rankings are there?


Graded homework1
Graded Homework

P. 151, 1, 3 + redo 3 assuming order is important (counting rules)

P. 169, 31 (Multiplication rule)

P. 177, 43 (Bayes’ theorem)


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