Google Answers Logo
View Question
 
Q: Statistics Questions: Bayes' Theorum, Probability Laws, Conditional Probability ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: Statistics Questions: Bayes' Theorum, Probability Laws, Conditional Probability
Category: Reference, Education and News > Homework Help
Asked by: jgortner-ga
List Price: $20.00
Posted: 03 Feb 2004 19:56 PST
Expires: 04 Mar 2004 19:56 PST
Question ID: 303368
I am studying for a test and having some trouble understanding this example.

It is reported that 50% of all computer chips produced are defective.
Inspection ensures than only 5% of the chips legally marketed are
defective. Unfortunately, some chips are stolen before inspection. If
1% of all chips on the market are stolen, find the probability that a
given chip is stolen before it is defective.

I am not looking for just an answer here, I'd really like to
understand the framework of such a problem. I pretty sure I need
Bayes' Theorem here, but I'm not sure. I will tip accourdingly! The
more descriptive a response, the bigger a tip.

Again, I'd like to really grasp this kind of problem so feel free to
go back and understand some basics as well as provide other examples.

A perfect answer would include; a detailed discussion of all formulas
and theorums used in the solution of the problem, a step by step
solution of the problem (stop here, and the answer is acceptable),
other similar examples, and discussion of this type of problem.

Request for Question Clarification by ragingacademic-ga on 03 Feb 2004 20:32 PST
jgortner - interesting question, thanks for submitting it to our forum.

I'd like to ask you to clarify the following - you wrote "If
1% of all chips on the market are stolen, find the probability that a
given chip is stolen before it is defective."

Perhaps it should read "...find the probability that a stolen chip is defective?"

Or maybe something else...?

The way it is currently written, I'm afraid the question does not make
sense to me...

Please clarify.

thanks,
ragingacademic

Clarification of Question by jgortner-ga on 03 Feb 2004 20:44 PST
my error the problem should read
"If 1% of all chips on the market are stolen, find the probability
that a given chip is stolen GIVEN THAT it is defective"

Clarification of Question by jgortner-ga on 03 Feb 2004 21:54 PST
Also, (sorry about the late addition) I would like to understand how
the following is incorrect:

P[D intersect S'] = 0.05 (given)
P[S] = 0.01 (given)
P[S'] = 0.99 (duh)
P[D] = Defectives that are stolen + Devectives that are not stolen
     = (0.01 * 0.50) + P[D intersect S']
     = 0.005 + 0.05
     = 0.055
P[D'] = 0.945
P[D intersect S] = 0.005
  because
  all defectives is 0.055 less defectives that arn't stolen 0.05 is 0.005

therefore

P[S|D] numerator = P[D|S]*P[S] (bayes' th)

 = P[S intersect D]/P[S] = 0.005 (above) / 0.01 (given) * 0.01 (cancels)
 = 0.005 (numerator)

P[S|D] denomenator = P[D|S]*P[S] + P[D|S']*P[S'] (bayes' th)
 = same as above for first part
 = 0.005 + P[S' intersect D]/P[S'] 
 = 0.005 + {0.05 (above) / 0.99 (given)} * 0.99 (cancels)
 = 0.005 + 0.05
 = 0.055 (denomenator)

 = 0.005 / 0.055
 = 1/11
Answer  
Subject: Re: Statistics Questions: Bayes' Theorum, Probability Laws, Conditional Probability
Answered By: elmarto-ga on 04 Feb 2004 06:39 PST
Rated:5 out of 5 stars
 
Hi jgortner!
In order to find the solution to this problem, we must find, as you
correctly stated in your answer, the numerator P[S intersect D] and
the denominator P[D]. Once we have thos values, using the definition
of condition probability, we'll be able to find the answer to the
problem as:

P[S|D] = P[S intersect D]/P[D]

One of the errors in the answer you provided in the clarification
request is at the very beggining, where you state that

P[D intersect S'] = 0.05 (given)

The problem reads: "5% OF the chips legally marketed are defective".
This implies that the probability of a chip being defective GIVEN THAT
it is not stolen (it's legally marketed) is 0.05. Therefore, it's not
P[D intersect S']=0.05, but rather:

P[D|S'] = 0.05

which implies, by the definition of conditional probability, that:

P[D intersect S']/P[S'] = 0.05

We know that P[S']=0.99; therefore

P[D intersect S'] = 0.99*0.05 = 0.0495

Now that we know this value, we can compute P[D intersect S], which we
need in order to calculate the answer to the whole problem. We have
that:

P[D intersect S'] = 0.0495
and
P[D] = P[D intersect S] + P[D intersect S'] = 0.5 (given)
(clearly, defective chips are either stolen or not stolen -but not
both at the same time-; therefore, the proportion of defective chips
is equal to the proportion of defectiv AND stolen chips plus the
proportion of defective AND non-stolen chips)

Notice that there is another error in the answer you provide. You
state that the unconditional probability of a chip being defective is
0.055. However, the problem states that: "50% of ALL computer chips
produced are defective". That is, regardless of whether the chips are
stolen or not. So, as I stated in the previous equation, P[D]=0.5.
From that same equation we can derive P[D intersect S]:

P[D intersect S] + P[D intersect S'] = 0.5
P[D intersect S] = 0.5 - P[D intersect S']
P[D intersect S] = 0.5 - 0.0495 = 0.4505

Now it's easy to find the solution to the problem. We're asked to find

P[S|D] = P[S intersect D]/P[D]
P[S|D] = 0.4505/0.5 = 0.901

Therefore there is a 90.1% probability that a defective chip is
stolen. This goes in line with the wording of the problem. Notice that
while 50% of all chips are defective, only 5% of legal chips are
defective. Therefore, the probability that a defective chip is stolen
should be quite "high".

Notice also that for this particular problem, usage of Bayes Theorem
is not necessary, we only used the definition of conditional
probability (which is of course very related to Bayes Theorem). The
Bayes Theorem states that:

P[A|B] = P[B|A]*P[A]/P[B]

In this problem, this would be equivalent to

P[S|D] = P[D|S]*P[S]/P[D]

However, this equation would not be useful in this problem, since we
still don't know P[D|S].

You can find more information about the Bayes Theorem and conditional
probability at the following links. They have good examples of how to
apply these techniques in order to solve probability problems.

Bayes' Theorem
http://plato.stanford.edu/entries/bayes-theorem/

http://faculty.vassar.edu/lowry/bayes.html

http://engineering.uow.edu.au/Courses/Stats/File2420d.html

http://arnoldkling.com/apstats/bayes.html


Google search strategy
bayes theorem
://www.google.com.ar/search?q=bayes+theorem&ie=UTF-8&oe=UTF-8&hl=es&meta=


I hope this helps! If you feel there's anythinf unclear about my
answer, please don't hesitate to request clarification; I'll be glad
to help you understand this subject.

Best wishes!
elmarto

Request for Answer Clarification by jgortner-ga on 04 Feb 2004 08:44 PST
Thank you for your response. But I would like some clarification.

I'm not totally convinced that

P[D intersect S'] = 0.05 (given)

is incorrect.

Please see the following solution I have typed up. It's in PDF.
http://7ds.gotdns.org/BayesThQuestion.pdf

I use P[D intersect S'] = 0.05 and the question yeilds the same answer.

Also, my question wanted an explanation of Bayes theorum in basic
terms and how this problem directly applies to that formula. Your
solution seems to have worked around Bayes theorum.

So, please
 1. Clarify why P[D intersect S'] = 0.05 is incorrect
 2. Tell me how my solution (the pdf file above) is incorrect
 3. Solve the problem using Bayes' Th.
 4. Explain how one would derive that a problem of this type would
need Bayes' Th. and how Bayes' Th. itself is derived.

My price on this question was higher than many similar question on
answers.google.com and is why I am requesting more information.

Clarification of Answer by elmarto-ga on 04 Feb 2004 11:32 PST
Hi again jgortner!
The reason why P[D intersect S'] = 0.05 is incorrect is given in my
answer. As I said, the problem states that "...5% OF legally marketed
chips are defective". Saying that P[D n S']=0.05 is different from
that statement. P[D n S']=0.05 implies that a randomly selected chip
from the WHOLE universe of chips (legal and illegal ones) has a 5%
chance of being both legal and defective. This is not the same to say
that if we draw a random chip from the subset of *legal* chips, there
is a 5% chance that it is defective.

Let's see why. Imagine there are 200 chips. 100 of them are legal and
100 are not. Of the legal chips, we have 5 defective and 95
functioning. Of the illegal chips, all are defective. So in this case
it's true that P[D|S']=0.05, because from the subset of legal chips
(100) there are 5 defective ones, so the probability of getting a
defective chip is 5/100. However P[D n S']=5/200=0.025 (from the
universe of 200 chips, there are 5 that are legal and defective).

The main mistake in your answer is confusing P[D|S'] with P[D n S'],
which unfortunately throws further calculations in the wrong
direction. Even taking that in account, there are some more mistakes
in your answer:

- You state that P[D n S] = P[D]*P[S]. This is not necessarily true
(and in this case it's definitely not true). The assertion that P[A n
B]=P[A]*P[B] is only true when A and B are "independent" events.
Consider the following distribution of chips:

              Defective       Non Defective
Stolen           100             0
Non stolen        0             100

There are 200 chips in total. 100 are stolen and defective, 100 are
non-stolen and non-defective. The probability of a random chip (from
the whole universe of chips) being stolen is 100/200=0.5 (100 stolen
chips/200 total chips). Thus P[S]=0.5. The probability of a random
chip being defective is also 0.5 for the same reason. Thus P[D]=0.5.
Now, what's P[S n D]? Looking at the distribution, it's clear that P[S
n D]=0.5 (100 defective-and-stolen chips/200 total chips). However
P[S]*P[D]=0.25. Therefore this step is wrong.

Furthermore, in this step you used the fact that P[D]=0.5. (in the
pdf, you state (Percentage of defective)*(Percentage of
stolen)=0.5*0.01). However, in the next lines, you come to the wrong
conclusion that P[D]=0.055. Although you correctly stated that
P[D]=P[D n S]+P[D n S'], you had wrong values for both P[DnS'] and
P[DnS]. In fact, this equation was not even necessary, since you
already knew that P[D]=0.5. In conclusion, these mistakes caused the
final answer to be wrong.

Regarding the solution using Bayes Theorem, this is exactly what i did
in my answer, although I didn't use the same form of the Bayes Theorem
you state in the first lines of the answer. But do notice that my way
to "attack" this problem was exactly the same as yours; namely, to
find the numerator and denominator in the Bayes Theorem equation. You
stated correctly that the numerator in this equation becomes P[S n D]
(unfortunately you found a wrong solution for P[S n D]). As you can
see in my answer, the steps I did were aimed at finding P[S n D]. Now,
what about the denominator? Again, you stated correctly that the
denominator is:

P[D|S]*P[S] + P[D|S']*P[S']

you also found above that P[D|S]*P[S] = P[D n S]. Using the same
logic, we find that P[D|S']*P[S']=P[D n S']. Therefore we have that
the denominator is:

P[D n S] + P[D n S']

However, as I stated in my answer, defective chips are either stolen
or non-stolen. So the proportion of defective-and-stolen chips plus
the proportion of defective-and-not-stolen chips, is the proportion of
defective chips. Therefore we have that the denominator in the Bayes
Theorem equation becomes simply P[D]. Therefore, the answer simply
comes from the following equation:

P[D n S] / P[D]

Regarding how to tell that a problem requires the usage of Bayes
Theorem, you'll find that almost all problems related to conditional
probability need some form of the Bayes Theorem in order to be solved.
More specifically, you'll recognize that you need to use the Bayes
Theorem in problems that supply (directly or indirectly) P[A|B] and
then ask you to find P[B|A] (or need this value in order to do some
further calculation). Variations could include using the complement of
A and B in the supplied and/or required information. For example, in
this problem, the statement supplies P[D|S'] and then asks you to find
P[S|D]. Whenever you come across a problem that gives you information
on the probability of event A given event B and then asks you to find
something similar to the probability of event B given event A, you'll
positively have to use this theorem in order to solve it.

The mathematical derivation of the Bayes Theorem requires some basic
knowledge of set theory, and can be found, step by step, in the
following page:

http://mathworld.wolfram.com/BayesTheorem.html


I hope this has clarified the answer. Please do ask again if you feel
something's still unclear.

Best wishes!
elmarto
jgortner-ga rated this answer:5 out of 5 stars
I had to clarify question multiple times. User responded quickly and politly.

Comments  
There are no comments at this time.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  


Google Home - Answers FAQ - Terms of Service - Privacy Policy