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Construct a probability model for tossing a fair coin.

Outcome Probability
Roll of 1
Roll of 2
Roll of 3
Roll of 4
Roll of 5
Roll of 6
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Computing probabilities of equally likely outcomes

Let S be a sample space for an experiment. When investigating probability, an event is any subset of S . When the outcomes of an experiment are all equally likely, we can find the probability of an event by dividing the number of outcomes in the event by the total number of outcomes in S . Suppose a number cube is rolled, and we are interested in finding the probability of the event “rolling a number less than or equal to 4.” There are 4 possible outcomes in the event and 6 possible outcomes in S , so the probability of the event is 4 6 = 2 3 .

Computing the probability of an event with equally likely outcomes

The probability of an event E in an experiment with sample space S with equally likely outcomes is given by

P ( E ) = number of elements in  E number of elements in  S = n ( E ) n ( S )

E is a subset of S , so it is always true that 0 P ( E ) 1.

Computing the probability of an event with equally likely outcomes

A number cube is rolled. Find the probability of rolling an odd number.

The event “rolling an odd number” contains three outcomes. There are 6 equally likely outcomes in the sample space. Divide to find the probability of the event.

P ( E ) = 3 6 = 1 2
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A number cube is rolled. Find the probability of rolling a number greater than 2.

2 3

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Computing the probability of the union of two events

We are often interested in finding the probability that one of multiple events occurs. Suppose we are playing a card game, and we will win if the next card drawn is either a heart or a king. We would be interested in finding the probability of the next card being a heart or a king. The union of two events     E  and  F , written  E F , is the event that occurs if either or both events occur.

P ( E F ) = P ( E ) + P ( F ) P ( E F )

Suppose the spinner in [link] is spun. We want to find the probability of spinning orange or spinning a b .

A pie chart with six pieces with two a's colored orange, one b colored orange and another b colored red, one d colored blue, and one c colored green.

There are a total of 6 sections, and 3 of them are orange. So the probability of spinning orange is 3 6 = 1 2 . There are a total of 6 sections, and 2 of them have a b . So the probability of spinning a b is 2 6 = 1 3 . If we added these two probabilities, we would be counting the sector that is both orange and a b twice. To find the probability of spinning an orange or a b , we need to subtract the probability that the sector is both orange and has a b .

1 2 + 1 3 1 6 = 2 3

The probability of spinning orange or a b is 2 3 .

Probability of the union of two events

The probability of the union of two events E and F (written E F ) equals the sum of the probability of E and the probability of F minus the probability of E and F occurring together ( which is called the intersection of E and F and is written as E F ).

P ( E F ) = P ( E ) + P ( F ) P ( E F )

Computing the probability of the union of two events

A card is drawn from a standard deck. Find the probability of drawing a heart or a 7.

A standard deck contains an equal number of hearts, diamonds, clubs, and spades. So the probability of drawing a heart is 1 4 . There are four 7s in a standard deck, and there are a total of 52 cards. So the probability of drawing a 7 is 1 13 .

The only card in the deck that is both a heart and a 7 is the 7 of hearts, so the probability of drawing both a heart and a 7 is 1 52 . Substitute P ( H ) = 1 4 ,   P ( 7 ) = 1 13 ,   and   P ( H 7 ) = 1 52 into the formula.

P ( E F ) = P ( E ) + P ( F ) P ( E F )                 = 1 4 + 1 13 1 52                 = 4 13

The probability of drawing a heart or a 7 is 4 13 .

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Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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Practice Key Terms 9

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Source:  OpenStax, Precalculus. OpenStax CNX. Jan 19, 2016 Download for free at https://legacy.cnx.org/content/col11667/1.6
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