MODULE 10 — PROBABILITY: TYPES & RULES
Q1.
Define probability. Explain the difference between theoretical (classical)
probability and empirical probability with business-related examples.
Q2.
What are mutually exclusive events?
Explain with one example from daily life and one from business
operations.
Q3.
Explain the complement rule of probability.
Give one example where using the complement is easier than computing
the event directly.
Q4.
What is the difference between independent and dependent events?
Provide one example of each.
Q5.
Explain the addition rule for:
(a) mutually exclusive events
(b) non–mutually exclusive events
Q6.
State the multiplication rule of probability.
When is it used?
⭐ Application-Based Questions
Q7.
A startup has a 0.35 probability of getting funding this quarter and a 0.40
probability next quarter.
If events are independent, find the probability it gets funding in both
quarters.
Q8.
A retail store observes the following probabilities:
P(Customer buys a snack) = 0.55
P(Customer buys a drink) = 0.30
P(Customer buys both) = 0.18
Find the probability that a customer buys snack OR drink.
Q9.
An HR manager finds probability that a candidate passes aptitude test =
0.7,
and probability the same candidate passes technical test = 0.6.
Assuming independence, find probability of passing both tests.
Q10.
A product has a 0.12 probability of defect.
Using complement rule, find probability that the product is non-
defective.
Q11.
A card is drawn from a standard 52-card deck.
Find the probability of drawing:
(a) A heart OR a king
(b) A red card AND a queen
Q12.
A store records that the probability a customer is female = 0.47,
probability customer is under 25 = 0.32,
probability customer is female and under 25 = 0.14.
Find the probability that a customer is female OR under 25.
Q13.
A bag contains 6 red, 7 blue, and 5 green balls.
One ball is drawn at random.
Find the probability that it is:
(a) blue
(b) not green
(c) red OR green
Q14.
Two dice are rolled.
Find the probability that the sum is greater than 9.
Q15.
A box contains 3 defective and 12 non-defective bulbs.
Two bulbs are drawn without replacement.
Find the probability both are defective.
Q16.
A team wins a match with probability 0.6.
What is the probability that the team loses at least one of the next two
matches?
Q17.
A machine produces 90% good items and 10% defective items.
Two items are selected at random (independent).
Find probability that at least one is defective.
Q18.
From a group of 5 men and 4 women, two persons are selected at random.
Find the probability that:
(a) both are men
(b) both are women
(c) one man & one woman
✅ CASE STUDY 1 (QT STYLE)
Customer Purchase Behaviour
A supermarket observes the following probabilities based on past data:
Probability a customer buys dairy items = 0.52
Probability a customer buys bakery items = 0.41
Probability a customer buys both = 0.22
Using the above information answer:
a) Find the probability a customer buys dairy OR bakery items.
b) Find the probability a customer buys neither.
c) Are these events mutually exclusive? Justify.
d) If 500 customers visit, how many are expected to buy both categories?
e) Interpret the result in terms of customer behaviour.
✅ CASE STUDY 2 (QT STYLE)
Loan Approval Scenario
A bank evaluates loan applications. Data shows:
Probability applicant has good credit score = 0.72
Probability applicant has stable income = 0.65
Probability applicant satisfies both conditions = 0.50
Answer the following:
a) Find probability that an applicant has good credit OR stable income.
b) Find probability that an applicant satisfies exactly one condition.
c) Find probability that an applicant satisfies neither condition.
d) Using multiplication rule, check whether the events “good credit” and
“stable income” are independent.
e) Interpret what the findings mean for loan approval policy.