ID Cost of Airfares in the US (domestic) 1 146 2 620 3 79 4 299 5 576 6 89 7 589 8 165 9 509 10 23 11 376 12 226 13 462 14 634 15 36 16 226 17 263 18 456 19 390 20 541 21 19 22 329 23 537 24 512 25 423 26 515 27 358 28 110 29 319 30 671 31 561 32 96 33 574 34 385 35 263 36 240 37 449 38 592 39 404 40 119 41 173 42 419 43 495 44 224 45 228 46 616 47 168 48 396 49 524 What if the probability that a domestic airfare is between $300 and $400? What is the cost for the 3% highest domestic airfares? Use Excel functions Dist and Norm.INV to check your answers in Question 2-5.
Compound Probability
Compound probability can be defined as the probability of the two events which are independent. It can be defined as the multiplication of the probability of two events that are not dependent.
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Probability theory is a branch of mathematics that deals with the subject of probability. Although there are many different concepts of probability, probability theory expresses the definition mathematically through a series of axioms. Usually, these axioms express probability in terms of a probability space, which assigns a measure with values ranging from 0 to 1 to a set of outcomes known as the sample space. An event is a subset of these outcomes that is described.
Conditional Probability
By definition, the term probability is expressed as a part of mathematics where the chance of an event that may either occur or not is evaluated and expressed in numerical terms. The range of the value within which probability can be expressed is between 0 and 1. The higher the chance of an event occurring, the closer is its value to be 1. If the probability of an event is 1, it means that the event will happen under all considered circumstances. Similarly, if the probability is exactly 0, then no matter the situation, the event will never occur.
| ID | Cost of Airfares in the US (domestic) |
| 1 | 146 |
| 2 | 620 |
| 3 | 79 |
| 4 | 299 |
| 5 | 576 |
| 6 | 89 |
| 7 | 589 |
| 8 | 165 |
| 9 | 509 |
| 10 | 23 |
| 11 | 376 |
| 12 | 226 |
| 13 | 462 |
| 14 | 634 |
| 15 | 36 |
| 16 | 226 |
| 17 | 263 |
| 18 | 456 |
| 19 | 390 |
| 20 | 541 |
| 21 | 19 |
| 22 | 329 |
| 23 | 537 |
| 24 | 512 |
| 25 | 423 |
| 26 | 515 |
| 27 | 358 |
| 28 | 110 |
| 29 | 319 |
| 30 | 671 |
| 31 | 561 |
| 32 | 96 |
| 33 | 574 |
| 34 | 385 |
| 35 | 263 |
| 36 | 240 |
| 37 | 449 |
| 38 | 592 |
| 39 | 404 |
| 40 | 119 |
| 41 | 173 |
| 42 | 419 |
| 43 | 495 |
| 44 | 224 |
| 45 | 228 |
| 46 | 616 |
| 47 | 168 |
| 48 | 396 |
| 49 | 524 |
- What if the probability that a domestic airfare is between $300 and $400?
- What is the cost for the 3% highest domestic airfares?
- Use Excel
functions Dist and Norm.INV to check your answers in Question 2-5.
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