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1 4 calculating probabilities Taking Chances What s the probability he s remembered I m allergic to non-precious metals? Life is full of uncertainty. Sometimes it can be impossible to say what will happen from one minute to the next. But certain events are more likely to occur than others, and that s where probability theory comes into play. Probability lets you predict the future by assessing how likely outcomes are, and knowing what could happen helps you make informed decisions. In this chapter, you ll find out more about probability and learn how to take control of the future! this is a new chapter 127

2 welcome to fat dan s casino Fat Dan s Grand Slam Fat Dan s Casino is the most popular casino in the district. All sorts of games are offered, from roulette to slot machines, poker to blackjack. It just so happens that today is your lucky day. Head First Labs has given you a whole rack of chips to squander at Fat Dan s, and you get to keep any winnings. Want to give it a try? Go on you know you want to. Are you ready to play? One of Fat Dan s croupiers These are all your poker chips; looks like you re in for a fun time. There s a lot of activity over at the roulette wheel, and another game is just about to start. Let s see how lucky you are. 128 Chapter 4

3 calculating probabilities Roll up for roulette! You ve probably seen people playing roulette in movies even if you ve never tried playing yourself. The croupier spins a roulette wheel, then spins a ball in the opposite direction, and you place bets on where you think the ball will land. The roulette wheel used in Fat Dan s Casino has 38 pockets that the ball can fall into. The main pockets are numbered from 1 to 36, and each pocket is colored either red or black. There are two extra pockets numbered 0 and 00. These pockets are both green. Roulette wheel Lightest gray = green black = black, medium gray = red, You can place all sorts of bets with roulette. For instance, you can bet on a particular number, whether that number is odd or even, or the color of the pocket. You ll hear more about other bets when you start playing. One other thing to remember: if the ball lands on a green pocket, you lose. Roulette boards make it easier to keep track of which numbers and colors go together. Roulette board. (See page 130 for a larger version.) You place bets on the pocket the ball will fall into on the wheel using the board. If the ball falls into the 0 or 00 pocket, you lose! you are here 4 129

4 roulette board Just be careful with those scissors. Your very own roulette board You ll be placing a lot of roulette bets in this chapter. Here s a handy roulette board for you to cut out and keep. You can use it to help work out the probabilities in this chapter. 130 Chapter 4

5 calculating probabilities Place your bets now! Have you cut out your roulette board? The game is just beginning. Where do you think the ball will land? Choose a number on your roulette board, and then we ll place a bet. Hold it right there! You want me to just make random guesses? I stand no chance of winning if I just do that. Right, before placing any bets, it makes sense to see how likely it is that you ll win. Maybe some bets are more likely than others. It sounds like we need to look at some probabilities... What things do you need to think about before placing any roulette bets? Given the choice, what sort of bet would you make? Why? you are here 4 131

6 finding probability What are the chances? Have you ever been in a situation where you ve wondered Now, what were the chances of that happening? Perhaps a friend has phoned you at the exact moment you ve been thinking about them, or maybe you ve won some sort of raffle or lottery. Probability is a way of measuring the chance of something happening. You can use it to indicate how likely an occurrence is (the probability that you ll go to sleep some time this week), or how unlikely (the probability that a coyote will try to hit you with an anvil while you re walking through the desert). In stats-speak, an event is any occurrence that has a probability attached to it in other words, an event is any outcome where you can say how likely it is to occur. Probability is measured on a scale of 0 to 1. If an event is impossible, it has a probability of 0. If it s an absolute certainty, then the probability is 1. A lot of the time, you ll be dealing with probabilities somewhere in between. Here are some examples on a probability scale. Impossible Equal chance of happening or not Certain A freak coyote anvil attack is quite unlikely; let s put it here. Throwing a coin and it landing heads up happens in about half of all tosses. Falling asleep at some point during a 168- hour period is almost certain. Vital Statistics Event An outcome or occurrence that has a probability assigned to it Can you see how probability relates to roulette? If you know how likely the ball is to land on a particular number or color, you have some way of judging whether or not you should place a particular bet. It s useful knowledge if you want to win at roulette. 132 Chapter 4

7 calculating probabilities Let s try working out a probability for roulette, the probability of the ball landing on 7. We ll guide you every step of the way. 1. Look at your roulette board. How many pockets are there for the ball to land in? 2. How many pockets are there for the number 7? 3. To work out the probability of getting a 7, take your answer to question 2 and divide it by your answer to question 1. What do you get? 4. Mark the probability on the scale below. How would you describe how likely it is that you ll get a 7? you are here 4 133

8 sharpen solution You had to work out a probability for roulette, the probability of the ball landing on 7. Here s how you calculate the solution, step by step. 1. Look at your roulette board. How many pockets are there for the ball to land in? There are 38 pockets. Don t forget that the ball can land in 0 or 00 as well as the 36 numbers. 2. How many pockets are there for the number 7? Just 1 3. To work out the probability of getting a 7, take your answer to question 2 and divide it by your answer to question 1. What do you get? Probability of getting 7 = 1 38 = Our answer to 3 decimal places 4. Mark the probability on the scale below? How would you describe how likely it is that you ll get a 7? The probability of getting a 7 is 0.026, so it falls around here. It s not impossible, but not very likely. 134 Chapter 4

9 calculating probabilities Find roulette probabilities Let s take a closer look at how we calculated that probability. Here are all the possible outcomes from spinning the roulette wheel. The thing we re really interested in is winning the bet that is, the ball landing on a 7. There s just one event we re really interested in: the probability of the ball landing on a 7. These are all possible outcomes, as the ball could land in any of these pockets. To find the probability of winning, we take the number of ways of winning the bet and divide by the number of possible outcomes like this: Probability = number of ways of winning There s one way of getting a 7, and there are 38 pockets. number of possible outcomes We can write this in a more general way, too. For the probability of any event A: Probability of event A occurring P(A) = n(a) n(s) Number of ways of getting an event A The number of S is known as the possibility space, or sample space. It s possible outcomes a shorthand way of referring to all of the possible outcomes. Possible events are all subsets of S. you are here 4 135

10 probabilities and venn diagrams You can visualize probabilities with a Venn diagram Probabilities can quickly get complicated, so it s often very useful to have some way of visualizing them. One way of doing so is to draw a box representing the possibility space S, and then draw circles for each relevant event. This sort of diagram is known as a Venn diagram. Here s a Venn diagram for our roulette problem, where A is the event of getting a 7. Here s the event for getting a 7. It has a 1 in it, as there s one way of getting a 7. Very often, the numbers themselves aren t shown on the Venn diagram. Instead of numbers, you have the option of using the actual probabilities of each event in the diagram. It all depends on what kind of information you need to help you solve the problem. 1 The actual size of the circle isn t important and doesn t indicate the relative probability of an event occurring. The key thing is what it includes and excludes. A 37 S There s a 37 here, as there are 37 other possible events: the pockets that aren t part of event A. S Complementary events There s a shorthand way of indicating the event that A does not occur A I. A I is known as the complementary event of A. There s a clever way of calculating P(A I ). A I covers every possibility that s not in event A, so between them, A and A I must cover every eventuality. If something s in A, it can t be in A I, and if something s not in A, it must be in A I. This means that if you add P(A) and P(A I ) together, you get 1. In other words, there s a 100% chance that something will be in either A or A I. This gives us or P(A) + P(A I ) = 1 P(A I ) = 1 - P(A) In A Probability 1 A A I Not in A In this diagram, A is used instead of 37 to indicate all the possible events that aren t in A 136 Chapter 4

11 calculating probabilities BE the croupier Your job is to imagine you re the croupier and work out the probabilities of various events. For each event below, write down the probability of a successful outcome. P(9) P(Green) P(Black) P(38) you are here 4 137

12 be the roulette wheel solution BE the croupier Solution Your job was to imagine you re the croupier and work out the probabilities of various events. For each event you should have written down the probability of a successful outcome. P(9) The probability of getting a 9 is exactly the same as getting a 7, as there s an equal chance of the ball falling into each pocket. Probability = 1 38 = (to 3 decimal places) P(Green) 2 of the pockets are green, and there are 38 pockets total, so: Probability = 2 38 = (to 3 decimal places) P(Black) 18 of the pockets are black, and there are 38 pockets, so: P(38) This event is actually impossible there is no pocket labeled 38. Therefore, the probability is 0. Probability = = (to 3 decimal places) The most likely event out of all these is that the ball will land in a black pocket. 138 Chapter 4

14 probabilities aren t guarantees And the winning number is... Oh dear! Even though our most likely probability was that the ball would land in a black pocket, it actually landed in the green 0 pocket. You lose some of your chips. The ball landed in the 0 pocket, so you lost some chips. There must be a fix! The probability of getting a black is far higher than getting a green or 0. What went wrong? I want to win! Probabilities are only indications of how likely events are; they re not guarantees. The important thing to remember is that a probability indicates a long-term trend only. If you were to play roulette thousands of times, you would expect the ball to land in a black pocket in 18/38 spins, approximately 47% of the time, and a green pocket in 2/38 spins, or 5% of the time. Even though you d expect the ball to land in a green pocket relatively infrequently, that doesn t mean it can t happen. 140 Chapter 4 No matter how unlikely an event is, if it s not impossible, it can still happen.

15 calculating probabilities Let s bet on an even more likely event Let s look at the probability of an event that should be more likely to happen. Instead of betting that the ball will land in a black pocket, let s bet that the ball will land in a black or a red pocket. To work out the probability, all we have to do is count how many pockets are red or black, then divide by the number of pockets. Sound easy enough? Bet: Red or Black That s a lot of pockets to count. We ve already worked out P(Black) and P(Green). Maybe we can use one of these instead. We can use the probabilities we already know to work out the one we don t know. Take a look at your roulette board. There are only three colors for the ball to land on: red, black, or green. As we ve already worked out what P(Green) is, we can use this value to find our probability without having to count all those black and red pockets. P(Black or Red) = P(Green I ) = 1 - P(Green) = = (to 3 decimal places) Don t just take our word for it. Calculate the probability of getting a black or a red by counting how many pockets are black or red and dividing by the number of pockets. you are here 4 141

16 adding probabilities Don t just take our word for it. Calculate the probability of getting a black or a red by counting how many pockets are black or red and dividing by the number of pockets. P(Black or Red) = = (to 3 decimal places) So P(Black or Red) = 1- P(Green) You can also add probabilities There s yet another way of working out this sort of probability. If we know P(Black) and P(Red), we can find the probability of getting a black or red by adding these two probabilities together. Let s see. Black A pocket can t be both black and red; they re separate events. Red S S is the possibility space, the box containing all the possibilities P(Black or Red) = = = P(Black) + P(Red) In this case, adding the probabilities gives exactly the same result as counting all the red or black pockets and dividing by Adding the probabilities gives the same result as adding the number of black or red pockets and dividing by 38. Two of the pockets are neither red nor black, so we ve put 2 out here. 142 Chapter 4

17 calculating probabilities Vital Statistics Probability To find the probability of an event A, use P(A) = n(a) n(s) Vital Statistics A I A I is the complementary event of A. It s the probability that event A does not occur. P(A I ) = 1 - P(A) Q: It looks like there are three ways of dealing with this sort of probability. Which way is best? A: It all depends on your particular situation and what information you are given. Suppose the only information you had about the roulette wheel was the probability of getting a green. In this situation, you d have to calculate the probability by working out the probability of not getting a green: 1 - P(Green) On the other hand, if you knew P(Black) and P(Red) but didn t know how many different colors there were, you d have to calculate the probability by adding together P(Black) and P(Red). Q: So I don t have to work out probabilities by counting everything? A: Often you won t have to, but it all depends on your situation. It can still be useful to double-check your results, though. Q: If some events are so unlikely to happen, why do people bet on them? A: A lot depends on the sort of return that is being offered. In general, the less likely the event is to occur, the higher the payoff when it happens. If you win a bet on an event that has a high probability, you re unlikely to win much money. People are tempted to make bets where the return is high, even though the chances of them winning is negligible. Q: Does adding probabilities together like that always work? A: Think of this as a special case where it does. Don t worry, we ll go into more detail over the next few pages. you are here 4 143

18 a new bet You win! This time the ball landed in a red pocket, the number 7, so you win some chips. This time, you picked a winning pocket: a red one. Time for another bet Now that you re getting the hang of calculating probabilities, let s try something else. What s the probability of the ball landing on a black or even pocket? Bet: Black or Even That s easy. We just add the black and even probabilities together. Sometimes you can add together probabilities, but it doesn t work in all circumstances. We might not be able to count on being able to do this probability calculation in quite the same way as the previous one. Try the exercise on the next page, and see what happens. 144 Chapter 4

19 calculating probabilities Let s find the probability of getting a black or even (assume 0 and 00 are not even). 1. What s the probability of getting a black? 2. What s the probability of getting an even number? 3. What do you get if you add these two probabilities together? 4. Finally, use your roulette board to count all the holes that are either black or even, then divide by the total number of holes. What do you get? you are here 4 145

20 sharpen solution Let s find the probability of getting a black or even (assume 0 and 00 are not even). 1. What s the probability of getting a black? 18 / 38 = What s the probability of getting an even number? 18 / 38 = What do you get if you add these two probabilities together? Finally, use your roulette board to count all the holes that are either black or even, then divide by the total number of holes. What do you get? 26 / 38 = Uh oh! Different answers I don t get it. Adding probabilities worked OK last time. What went wrong? Let s take a closer look Chapter 4

21 calculating probabilities Exclusive events and intersecting events When we were working out the probability of the ball landing in a black or red pocket, we were dealing with two separate events, the ball landing in a black pocket and the ball landing in a red pocket. These two events are mutually exclusive because it s impossible for the ball to land in a pocket that s both black and red. Black We have absolutely nothing in common. We re exclusive events. Red S If two events are mutually exclusive, only one of the two can occur. What about the black and even events? This time the events aren t mutually exclusive. It s possible that the ball could land in a pocket that s both black and even. The two events intersect. Black I guess this means we re sharing Even S If two events intersect, it s possible they can occur simultaneously Some of the pockets are both black and even. 12 What sort of effect do you think this intersection could have had on the probability? you are here 4 147

22 intersection and union Problems at the intersection Calculating the probability of getting a black or even went wrong because we included black and even pockets twice. Here s what happened. First of all, we found the probability of getting a black pocket and the probability of getting an even number. Black Even P(Black) = 18 P(Even) = = = When we added the two probabilities together, we counted the probability of getting a black and even pocket twice. Black Even Black Even = The intersection here was included twice P(Black Even) = 10 To get the correct answer, we need to subtract the probability of getting both black and even. This gives us P(Black or Even) = P(Black) + P(Even) - P(Black and Even) We can now substitute in the values we just calculated to find P(Black or Even): = We only need one of these, so let s subtract one of them. P(Black or Even) = 18/ /38-10/38 = 26/38 = Chapter 4

23 calculating probabilities Some more notation There s a more general way of writing this using some more math shorthand. First of all, we can use the notation A B to refer to the intersection between A and B. You can think of this symbol as meaning and. It takes the common elements of events. A The intersection here is A B. B S i tersection nion A B, on the other hand, means the union of A and B. It includes all of the elements in A and also those in B. You can think of it as meaning or. If A B =1, then A and B are said to be exhaustive. Between them, they make up the whole of S. They exhaust all possibilities. A B S If there are no elements that aren t in either A, B, or both, like in this diagram, then A and B are exhaustive. Here the white bit is empty. The entire shaded area is A B. On the previous page, we found that (P(Black or Even) = P(Black) + P(Even) - P(Black and Even) Write this equation for A and B using and notation. you are here 4 149

24 sharpen solution On the previous page, we found that (P(Black or Even) = P(Black) + P(Even) - P(Black and Even) P(A or B) Write this equation for A and B using and notation. P(A B) = P(A) + P(B) - P(A B) P(A and B) So why is the equation for exclusive events different? Are you just giving me more things to remember? It s not actually that different. Mutually exclusive events have no elements in common with each other. If you have two mutually exclusive events, the probability of getting A and B is actually 0 so P(A B) = 0. Let s revisit our blackor-red example. In this bet, getting a red pocket on the roulette wheel and getting a black pocket are mutually exclusive events, as a pocket can t be both red and black. This means that P(Black Red) = 0, so that part of the equation just disappears. There s a difference between exclusive and exhaustive. If events A and B are exclusive, then P(A B) = 0 If events A and B are exhaustive, then P(A B) = Chapter 4

25 calculating probabilities BE the probability Your job is to play like you re the probability and shade in the area that represents each of the following probabilities on the Venn diagrams. S A B P(A B) + P(A B I ) S A B P(A I B I ) S A B P(A B) - P(B) you are here 4 151

26 be the probability solution BE the probability Solution Your job was to play like you re the probability and shade in the area that represents each of the probabilities on the Venn diagrams. S A B P(A B) + P(A B I ) S A B P(A I B I ) S A B P(A B) - P(B) 152 Chapter 4

27 calculating probabilities 50 sports enthusiasts at the Head First Health Club are asked whether they play baseball, football, or basketball. 10 only play baseball. 12 only play football. 18 only play basketball. 6 play baseball and basketball but not football. 4 play football and basketball but not baseball. Draw a Venn diagram for this probability space. How many enthusiasts play baseball in total? How many play basketball? How many play football? Are any sports rosters mutually exclusive? Which sports are exhaustive (fill up the possibility space)? Vital Statistics A or B To find the probability of getting event A or B, use P(A B) = P(A) + P(B) - P(A B) means OR means AND you are here 4 153

29 calculating probabilities Another unlucky spin We know that the probability of the ball landing on black or even is 0.684, but, unfortunately, the ball landed on 23, which is red and odd. but it s time for another bet Even with the odds in our favor, we ve been unlucky with the outcomes at the roulette table. The croupier decides to take pity on us and offers a little inside information. After she spins the roulette wheel, she ll give us a clue about where the ball landed, and we ll work out the probability based on what she tells us. Here s your next bet and a hint about where the ball landed. Shh, don t tell Fat Dan... Bet: Even Clue: The ball landed in a black pocket Should we take this bet? How does the probability of getting even given that we know the ball landed in a black pocket compare to our last bet that the ball would land on black or even. Let s figure it out. you are here 4 155

30 introducing conditional probability Conditions apply The croupier says the ball has landed in a black pocket. What s the probability that the pocket is also even? But we ve already done this; it s just the probability of getting black and even. This is a slightly different problem We don t want to find the probability of getting a pocket that is both black and even, out of all possible pockets. Instead, we want to find the probability that the pocket is even, given that we already know it s black. S Black Even We can ignore these areas we know that the pocket is black. 12 We already know the pocket is black. In other words, we want to find out how many pockets are even out of all the black ones. Out of the 18 black pockets, 10 of them are even, so We want the probability that the pocket is even, given that it s black. P(Even given Black) = Chapter 4 18 = (to 3 decimal places) It turns out that even with some inside information, our odds are actually lower than before. The probability of even given black is actually less than the probability of black or even. However, a probability of is still better than 50% odds, so this is still a pretty good bet. Let s go for it. Black out of 18 are even. Even

31 calculating probabilities Find conditional probabilities So how can we generalize this sort of problem? First of all, we need some more notation to represent conditional probabilities, which measure the probability of one event occurring relative to another occurring. If we want to express the probability of one event happening given another one has already happened, we use the symbol to mean given. Instead of saying the probability of event A occurring given event B, we can shorten it to say P(A B) P(A B) = P(A B) The probability of A given that we know B has happened. So now we need a general way of calculating P(A B). What we re interested in is the number of outcomes where both A and B occur, divided by all the B outcomes. Looking at the Venn diagram, we get: P(B) P(B) B I m a given Because we re trying to find the probability of A given B, we re only interested in the set of events where B occurs. A S We can rewrite this equation to give us a way of finding P(A B) P(A B) = P(A B) P(B) It doesn t end there. Another way of writing P(A B) is P(B A). This means that we can rewrite the formula as P(B A) = P(B A) P(A) In other words, just flip around the A and the B. P(A B) It looks like it can be difficult to show conditional probability on a Venn diagram. I wonder if there s some other way. Venn diagrams aren t always the best way of visualizing conditional probability. Don t worry, there s another sort of diagram you can use a probability tree. you are here 4 157

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