Intro to Business Statistics

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Marginal Probability

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Intro to Business Statistics

Definition

Marginal probability is the probability of an event occurring without considering the impact of other events. It represents the overall likelihood of an individual event happening, regardless of the relationship or dependence between variables.

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5 Must Know Facts For Your Next Test

  1. Marginal probability is used to calculate the overall likelihood of an event occurring, without considering the influence of other events.
  2. Marginal probabilities are often displayed in the margins of a contingency table, hence the name 'marginal probability'.
  3. Marginal probabilities can be calculated by summing the joint probabilities across rows or columns of a contingency table.
  4. Marginal probabilities are essential for understanding the independence or dependence between variables in a probability model.
  5. Marginal probabilities provide a baseline for comparison when analyzing the impact of conditional probabilities or joint probabilities.

Review Questions

  • Explain how marginal probability is calculated and interpreted using a contingency table.
    • In a contingency table, the marginal probabilities are calculated by summing the joint probabilities across the rows or columns. The row marginal probabilities represent the overall likelihood of each row variable, while the column marginal probabilities represent the overall likelihood of each column variable. These marginal probabilities provide a baseline understanding of the individual event probabilities, without considering the relationship between the variables.
  • Describe the relationship between marginal probability and conditional probability in the context of a probability tree diagram.
    • A probability tree diagram illustrates the sequence of events and their associated probabilities. Marginal probabilities are represented by the probabilities at the first level of the tree, which indicate the overall likelihood of each initial event. Conditional probabilities are then used to calculate the probabilities of subsequent events, given the occurrence of previous events. The combination of marginal and conditional probabilities allows for a comprehensive understanding of the overall probability model.
  • Analyze how marginal probabilities can be used to assess the independence or dependence between variables in a probability model.
    • If the marginal probabilities of two variables in a contingency table are equal to their corresponding joint probabilities, then the variables are considered independent. In this case, the occurrence of one variable does not affect the probability of the other. Conversely, if the marginal probabilities do not match the joint probabilities, the variables are dependent, and the probability of one variable is influenced by the occurrence of the other. Analyzing the relationship between marginal and joint probabilities is a crucial step in understanding the underlying probability model and the nature of the variables being studied.
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