Purchase Solution

Probability: Bayes Theorem

Not what you're looking for?

Ask Custom Question

An admissions committee must select students for an MBA program. Past data show that 70% of students complete (C) the program. It is also known that 50% of the graduating students scored above 500 (A) on the GMAT test. While 20% of the dropouts (D) scored that well. Consider a new MBA student.

A) What is the prior probabilty that she will complete the degree

B) Given that she scores 575 on the GMAT test, what is posterior probability that she will complete her MBA

C) Given that she scores 450 on the test, what is the posterior probability that she will graduate?

Purchase this Solution
Solution Summary

Solves a probability question using Bayes theorem.

Solution Preview

% that graduate= 70%
% of Dropouts= 30%
Total= 100%

A) What is the prior probability that she will complete the degree

Probability is = 70% or 7/10
Answer: 7/10

B) Given that she scores 575 on the GMAT test, what is posterior probability that she will complete her MBA

Let the no of students be = 100
No that graduate= 70 =70.%*100
No of dropouts= 30 =30.%*100

% of graduating students that score over 500 in GMAT= 50%

No of graduating students who scored more than 500 in GMAT= 35 =50.%*70

% of dropouts that score over 500 in GMAT= 20%

No of dropouts who scored more than 500 in ...

Purchase this Solution
Free BrainMass Quizzes
Probability Quiz

Some questions on probability

Multiplying Complex Numbers

This is a short quiz to check your understanding of multiplication of complex numbers in rectangular form.

Geometry - Real Life Application Problems

Understanding of how geometry applies to in real-world contexts

Know Your Linear Equations

Each question is a choice-summary multiple choice question that will present you with a linear equation and then make 4 statements about that equation. You must determine which of the 4 statements are true (if any) in regards to the equation.

Graphs and Functions

This quiz helps you easily identify a function and test your understanding of ranges, domains , function inverses and transformations.

View More Free Quizzes
Related BrainMass Solutions

  • Bayes's theorem

    As a formal theorem, Bayes' theorem is valid in all interpretations of probability.

  • Use of Bayes' theorem in health care administration

    Bayes' theorem allows you to consider the actual probability of an event given the measured test probabilities, unlike traditional statistics. (the probability of error) I.e. -"Correct for measurement errors.

  • Bayes' Theorem for Probability Revision

    It incorporates Bayes' Theorem and the conditional probability laws.

  • Describing a Bayes Theorem Application

    167814 Describing a Bayes Theorem Application Bayes theorem is very important, since it forms the basis of much of our thinking in conditional probability and making "predictions" statistically based on historical data.

  • Probability - Bayes' Theorem

    58142 Probability - Bayes' Theorem The Question is: An estimated 8% of men and O.5% of women are colorblind. If a colorblind person is selected at random, what is the probability that the person is a man?

  • Probability : Bayes' Theorem

    36914 Probability : Bayes' Theorem In a survey, it is found that 10 boys out of hundred are in favor of selecting their life partners themselves without any interference by their parents. Where as only 20 girls out of 500 hold this view.

  • Prostate Cancer Test

    A table is developed to apply Bayes' Theorem to answer the questions. The calculation for each box in the table is shown.

  • Bayes' Theorem: Uses for Business-related Questions

    318426 Bayes' Theorem: Uses for Business-related Questions Why is using Bayes' theorem important to help answer business-related questions? What does this theorem allow you to do that traditional statistics do not?

  • Why is using Bayes' theorem important

    298014 Why is using Bayes' theorem important Why is using Bayes' theorem important to help answer business-related questions? What does this theorem allow you to do that traditional statistics do not?

  • Decision Under Uncertainty - Bayes' Theorem

    524087 Decision Under Uncertainty - Bayes' Theorem Need help with the following: Research statistical data in a business context that requires a decision. Use probability concepts found in Bayes' Theorem to formulate a decision.

View More Related Solutions