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Chapter 7: Probability

297

Notation:

We will let

P

(

A

|

B

) represent the conditional probability of the

event

A

given that event

B

has occurred. It is read as “the probability of

A

given

B

”.

Rule 8:

The conditional probability of an event

A

, given that event

B

has

occurred, is computed from the following formula:

Example 7-21:

In a sample of 100 visitors to a city, 64 said they were on a

vacation trip, 28 said they were on a business trip, and 10 said they were

“killing two birds with one stone” by combining their business trip with their

vacation. If a visitor from this sample is selected at random, what is the

probability that the visitor is on a business trip given that the visitor is on

vacation?

Solution:

Let

B

be the event that the visitor is on a business trip. Let

V

be

the event that the visitor is on vacation. Then, we need to compute

P

(

B

|

V

).

From the information given in the problem,

P

(

B

) = 0.28,

P

(

V

) = 0.64, and

P

(

B

V

) = 0.1. Thus,

P

(

B

|

V

) =

P

(

B

V

) /

P

(

V

) = 0.1/0.64 = 0.15637

(correct to four decimal places).

Note:

In finding a conditional probability, we restrict the sample space to the event

on which we condition.

In

Example 7-21

, we are restricting the sample space to the event

V

.

Figure

7-19

shows this restricted sample space of the event

V

.