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Statistics for Decision- Making in Business - Maricopa Community ...

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SOLUTION: We first th<strong>in</strong>k about what it is that we need to know. Per the question asked, the<br />

event is that the first and second cards drawn are both Cori‟s.<br />

This event occurs when the 2 cards drawn both come out of the 7 he has put <strong>in</strong> thus far. S<strong>in</strong>ce the<br />

order <strong>in</strong> which his two cards are drawn don‟t matter (as the prize is the same), we would like to<br />

know the value of<br />

The sample space is simply the total number of outcomes. Two cards will be drawn from the<br />

stack of 40, and s<strong>in</strong>ce order doesn‟t matter<br />

Thus, the probability of this event is<br />

( )<br />

There is about a 3% chance that both of the cards drawn are Cori‟s.<br />

Example 3: Probability is often used <strong>in</strong> police <strong>in</strong>vestigations to help<br />

determ<strong>in</strong>e probable cause. Suppose that <strong>in</strong> a gang-related report it was<br />

stated that three gang members were spotted. In an <strong>in</strong>terrogation room,<br />

20 gang members are suspects, three of whom are certa<strong>in</strong> to have<br />

committed the crime. A detective has a suspicion that the three came<br />

from a gang of which 5 of its members are present. Just by chance,<br />

how likely is it that the three members came from the gang he believes to be beh<strong>in</strong>d the<br />

crime Does this give him what you might consider “probable cause” to pursue the group<br />

SOLUTION: The event is that the three crim<strong>in</strong>als come from a group of five particular gang<br />

members. There are<br />

The total number of way three-crim<strong>in</strong>al groups that can be <strong>for</strong>med out of the suspects is<br />

This means,<br />

<strong>Statistics</strong> <strong>for</strong> <strong>Decision</strong>-<strong>Mak<strong>in</strong>g</strong> <strong>in</strong> Bus<strong>in</strong>ess © Milos Podmanik Page 126

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