Suppose a number is chosen at random from the set {1,2,3,4}. For events A: {1,3}. B: {1,2} and C: {1,4}, which of the following does NOT hold?
A, B and C are independent
This solution explains the concept of event independence in probability using a specific example. We are given a set of numbers (sample space) and three events A, B, and C defined on this set. The goal is to determine which statement about the independence of these events is incorrect.
The problem provides the following information:
The probability of an event is calculated as the number of favourable outcomes divided by the total number of outcomes.
Two events, say X and Y, are considered independent if the probability of both occurring together is equal to the product of their individual probabilities, i.e., P(X ∩ Y) = P(X) * P(Y). Let's check this for the pairs (A, B), (A, C), and (B, C).
First, find the intersection of A and B:
Now, calculate the product of their individual probabilities:
Since P(A ∩ B) = P(A) * P(B) ($\frac{1}{4} = \frac{1}{4}$), events A and B are independent.
First, find the intersection of A and C:
Now, calculate the product of their individual probabilities:
Since P(A ∩ C) = P(A) * P(C) ($\frac{1}{4} = \frac{1}{4}$), events A and C are independent.
First, find the intersection of B and C:
Now, calculate the product of their individual probabilities:
Since P(B ∩ C) = P(B) * P(C) ($\frac{1}{4} = \frac{1}{4}$), events B and C are independent.
For three events A, B, and C to be considered mutually independent, all pairwise independence conditions must be met, and additionally, the probability of all three occurring together must equal the product of their individual probabilities.
The conditions are:
We have already confirmed that A, B, and C satisfy the first three conditions (pairwise independence).
First, find the intersection of A, B, and C:
Now, calculate the product of their individual probabilities:
Compare the results:
Since P(A ∩ B ∩ C) ≠ P(A) * P(B) * P(C) ($\frac{1}{4} \neq \frac{1}{8}$), the events A, B, and C are NOT mutually independent.
Let's review the options based on our calculations:
The question asks to identify the statement that does NOT hold. Therefore, the statement "A, B and C are independent" is the correct choice.
The analysis demonstrates that while the events A, B, and C are independent in pairs (meaning each pair satisfies the independence condition P(X ∩ Y) = P(X)P(Y)), they are not mutually independent. This is because the condition for mutual independence, specifically P(A ∩ B ∩ C) = P(A)P(B)P(C), is not satisfied.
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| Source of variation | Degrees of freedom | The sum of Squares (SS) | Mean SS | F Ratio |
| Treatments | a | b | c | 5 |
| Error | 12 | d | 20 | |
| Total | 15 | 540 |
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| (a) Marginalist Revolution | (i) Samuelson |
| (b) Multiplier-Accelerator model | (ii) J. R. Hicks |
| (c) IS-LM curves | (iii) Jevous |
| (d) Real Business Cycle | (iv) Robert J. Borro |
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A. OLS method
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C. Two - stage Least Square Method (2 SLS method)
D. Full Information Maximum Likelihood method (FIML)
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