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• Probability= Likelihood= Chance 
• Three Term 
(1)Experiment 
A process that leads to the occurrence of one(and only one) of 
several possible observation. (eg- tossing a coin, microscope=>2 or more 
possible result) 
Experiment Outcome 
(2)Outcome 
A particular result of the experiment. (eg – tossing a coin => head & tail) 
(3)Event 
A collection of one of more outcomes of an experiment. 
1st time=> 200 people tossing a coin 
2nd time => 500 people tossing a coin
Independent Case 
Dependent Case 
(Joint Probability) 
P(A) 
Addition 
P(A or B)= P(A)+P(B) 
P(A) 
Multiplication 
P(A and B)= P(A) * P(B) 
Addition 
P(A or B)= P(A)+P(B)-P(A and B) 
Multiplication 
P(A and B)= P(A) * P(B|A) 
P(B) 
P(B)
Joint Probability 
• Joint Probability is the likelihood that two or more events 
will happen at the same time. 
Conditional Probability 
• A conditional probability is the likelihood that an event 
will happen given that another event has already 
happened.
In the 18th Century , Reverend Thomas Bayes, an English 
Presbyterian minister, ponder this question: 
“Does God really exist?” 
Being interested in the mathematics, he attempt to develop a 
formula to arrive at the probability that God does exist based on 
the evidence that was available to him on earth. 
Later, Laplace refined Bayes’ work and gave it the name 
“Bayes’ Theorem”.
Bayes’ Theorem is a method of revising a probability, 
given that additional information is obtained. For two event: 
P(A1|B)=P(A1) P(B|A1) 
P(A1)P(B|A1)+P(A2)P(B|A2) 
Prior Probability 
The initial Probability based on the present level of 
information. 
Posterior Probability 
A revised Prabability based on additional information.
• The manufacturer of VCR purchase LS-24 chip from the three 
suppliers called Hall Electronic, Schuller Sales and Crawford 
component. 
• 30 % of LS-24 chip are purchased from Hall Electronic. 
• 20% of LS-24 chip are purchased from Schuller Sales . 
• 50% of LS-24 chip are purchased from Crawford Component. 
• The manufacturer has the extensive history with the three 
suppliers and know that 3 % of LS-24 chip from Hall 
Electronic are defective .
• 5 % of LS-24 chip from Schuller Sales are defective. 
• 4 % of LS-24 chip from Crawford Component are 
defective. 
• When the LS-24 chips are arrive at the manufacturer, 
they are placed directly in a bin and not inspected. 
• A worker selects a chip for installation and finds it 
defective. 
• What is a probability that it was 
manufactured by Schuller Sale?
There are three event, that is , three supplier 
A1= The LS-24 was purchased from Hall Electronics 
A2= The LS-24 was purchased from Schuller Electronics 
A3= The LS-24 was purchased from Crawford Component 
Prior Probabilities 
P(A1)= .30 => The probability the LS-24 was manufactured by Hall 
Electronic 
P(A2)= .20 => The probability the LS-24 was manufactured by Schuller 
Electronic 
P(A3)=.50 => The probability the LS-24 was manufactured by Crawford 
Component 
The additional information is that the LS-24 chip is defective. 
B1 => The LS-24 is defective. 
B2 => The LS-24 is not defective
The following conditional probabilities are given 
P(B1| A1)=.03 The probability that an LS-24 chip produced 
by Hall Electronic is defective. 
P(B1| A2)=.05 The probability that an LS-24 chip produced 
by Schuller Sales is defective. 
P(B1| A3)=.04 The probability that an LS-24 chip produced 
by Crawford Component is defective.
Conditional 
Probability 
Prior 
Probability 
Probability 
P(A1)=.30 
P(B1|A1)=.03 
P(B2|A1)=.97 
P(A2)=.20 
P(B1|A2)=.05 
P(B2|A2)=.95 
P(A3)=.50 
P(B1|A3)=.04 
P(B2|A3)=.96 
Joint Probability 
A1= Hall Electronic 
A2= Schuller Electronics 
A3= Crawford Component 
B1= Defective 
B2=Good 
P(A1 and B1) 
=P(A1)P(B1|A1) 
=.30x.03=.009 
P(A1 and B2) 
=P(A1)P(B2|A1) 
=.30x.97=.291 
P(A2 and B1) 
=P(A2)P(B1|A2) 
=.20x.05=.010 
P(A2 and B2) 
=P(A2)P(B2|A2) 
=.20x.95=.190 
P(A3and B1) 
=P(A3)P(B1|A3) 
=.50x.04=.020 
P(A3 and B2) 
=P(A3)P(B2|A3) 
=.20x.95=.480
Event 
(Ai) 
Prior Probability 
(P(Ai)) 
Conditional 
Probability 
(P(Bi| Ai) 
Joint 
Probability 
P(Ai and Bi) 
Posterior 
Probability 
P(Ai|Bi) 
Hall .30 .03 .009 .009/.039=.2308 
Schuller .40 .05 .010 .010/.039=.2564 
Crawford .50 .04 .020 .020/.039=.5128 
P(Bi)= .039 1.0000 
Defective chip probability was manufactured by Schuller Sale=.2564(26%)
Probability Concept and Bayes Theorem

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Probability Concept and Bayes Theorem

  • 1.
  • 2. • Probability= Likelihood= Chance • Three Term (1)Experiment A process that leads to the occurrence of one(and only one) of several possible observation. (eg- tossing a coin, microscope=>2 or more possible result) Experiment Outcome (2)Outcome A particular result of the experiment. (eg – tossing a coin => head & tail) (3)Event A collection of one of more outcomes of an experiment. 1st time=> 200 people tossing a coin 2nd time => 500 people tossing a coin
  • 3. Independent Case Dependent Case (Joint Probability) P(A) Addition P(A or B)= P(A)+P(B) P(A) Multiplication P(A and B)= P(A) * P(B) Addition P(A or B)= P(A)+P(B)-P(A and B) Multiplication P(A and B)= P(A) * P(B|A) P(B) P(B)
  • 4. Joint Probability • Joint Probability is the likelihood that two or more events will happen at the same time. Conditional Probability • A conditional probability is the likelihood that an event will happen given that another event has already happened.
  • 5. In the 18th Century , Reverend Thomas Bayes, an English Presbyterian minister, ponder this question: “Does God really exist?” Being interested in the mathematics, he attempt to develop a formula to arrive at the probability that God does exist based on the evidence that was available to him on earth. Later, Laplace refined Bayes’ work and gave it the name “Bayes’ Theorem”.
  • 6. Bayes’ Theorem is a method of revising a probability, given that additional information is obtained. For two event: P(A1|B)=P(A1) P(B|A1) P(A1)P(B|A1)+P(A2)P(B|A2) Prior Probability The initial Probability based on the present level of information. Posterior Probability A revised Prabability based on additional information.
  • 7. • The manufacturer of VCR purchase LS-24 chip from the three suppliers called Hall Electronic, Schuller Sales and Crawford component. • 30 % of LS-24 chip are purchased from Hall Electronic. • 20% of LS-24 chip are purchased from Schuller Sales . • 50% of LS-24 chip are purchased from Crawford Component. • The manufacturer has the extensive history with the three suppliers and know that 3 % of LS-24 chip from Hall Electronic are defective .
  • 8. • 5 % of LS-24 chip from Schuller Sales are defective. • 4 % of LS-24 chip from Crawford Component are defective. • When the LS-24 chips are arrive at the manufacturer, they are placed directly in a bin and not inspected. • A worker selects a chip for installation and finds it defective. • What is a probability that it was manufactured by Schuller Sale?
  • 9. There are three event, that is , three supplier A1= The LS-24 was purchased from Hall Electronics A2= The LS-24 was purchased from Schuller Electronics A3= The LS-24 was purchased from Crawford Component Prior Probabilities P(A1)= .30 => The probability the LS-24 was manufactured by Hall Electronic P(A2)= .20 => The probability the LS-24 was manufactured by Schuller Electronic P(A3)=.50 => The probability the LS-24 was manufactured by Crawford Component The additional information is that the LS-24 chip is defective. B1 => The LS-24 is defective. B2 => The LS-24 is not defective
  • 10. The following conditional probabilities are given P(B1| A1)=.03 The probability that an LS-24 chip produced by Hall Electronic is defective. P(B1| A2)=.05 The probability that an LS-24 chip produced by Schuller Sales is defective. P(B1| A3)=.04 The probability that an LS-24 chip produced by Crawford Component is defective.
  • 11. Conditional Probability Prior Probability Probability P(A1)=.30 P(B1|A1)=.03 P(B2|A1)=.97 P(A2)=.20 P(B1|A2)=.05 P(B2|A2)=.95 P(A3)=.50 P(B1|A3)=.04 P(B2|A3)=.96 Joint Probability A1= Hall Electronic A2= Schuller Electronics A3= Crawford Component B1= Defective B2=Good P(A1 and B1) =P(A1)P(B1|A1) =.30x.03=.009 P(A1 and B2) =P(A1)P(B2|A1) =.30x.97=.291 P(A2 and B1) =P(A2)P(B1|A2) =.20x.05=.010 P(A2 and B2) =P(A2)P(B2|A2) =.20x.95=.190 P(A3and B1) =P(A3)P(B1|A3) =.50x.04=.020 P(A3 and B2) =P(A3)P(B2|A3) =.20x.95=.480
  • 12. Event (Ai) Prior Probability (P(Ai)) Conditional Probability (P(Bi| Ai) Joint Probability P(Ai and Bi) Posterior Probability P(Ai|Bi) Hall .30 .03 .009 .009/.039=.2308 Schuller .40 .05 .010 .010/.039=.2564 Crawford .50 .04 .020 .020/.039=.5128 P(Bi)= .039 1.0000 Defective chip probability was manufactured by Schuller Sale=.2564(26%)