Probability for CA Foundation

Measuring chance: classical probability, the addition and multiplication rules, conditional probability and expected value.

Quantitative AptitudePaper 3, Statistics12 MCQs2 lessons2 flashcards3 memory tricks

Practise Probability free

What you'll learn

  1. Basic probability and the addition rule
    Calculate classical probabilities and use the addition theorem.
  2. Multiplication rule, conditional probability and expectation
    Use independence, conditional probability and expected value.

Key formulas

Classical probabilityP(A) = favourable ÷ total equally likely outcomes
Range0 ≤ P(A) ≤ 1
ComplementP(not A) = 1 − P(A)
Addition theoremP(A ∪ B) = P(A) + P(B) − P(A ∩ B)
Odds in favour a : bP = a/(a + b)
Independent eventsP(A ∩ B) = P(A) × P(B)
Conditional probabilityP(A | B) = P(A ∩ B) ÷ P(B)
General multiplicationP(A ∩ B) = P(B) × P(A | B)

Concepts explained

Classical probability

P(A) = favourable outcomes ÷ total equally likely outcomes; it always lies between 0 (impossible) and 1 (certain).

What it means

  • Coin: 2 outcomes; two coins: 4; die: 6; two dice: 36; pack: 52 cards.
  • P(not A) = 1 − P(A).
  • Odds in favour a : b → P = a/(a + b); odds against b : a.
  • For 'at least one', use 1 − P(none).
Example 1: Two dice
  • Sum 7: six favourable pairs out of 36

Answer: 1/6

Example 2: At least one head
  • Two coins: P(no head) = 1/4

Answer: 3/4

Related terms

  • Sample space: the set of all possible outcomes
  • Equally likely: no outcome is favoured over another

Exam tip: With two dice, write the 6 × 6 table once in your rough work; it answers most sum questions.

Addition and multiplication rules

'Or' adds probabilities (subtracting any overlap); 'and' multiplies them for independent events.

What it means

  • Addition theorem: P(A ∪ B) = P(A) + P(B) − P(A ∩ B).
  • Mutually exclusive: P(A ∩ B) = 0, so just add.
  • Independent: P(A ∩ B) = P(A) × P(B).
  • Without replacement, the second probability changes: P = P(first) × P(second | first).
Example 1: Overlap
  • P(A) = 0.5, P(B) = 0.4, P(A ∩ B) = 0.2

Answer: P(A ∪ B) = 0.7

Example 2: Two aces without replacement
  • (4/52) × (3/51)

Answer: 1/221

Related terms

  • Exhaustive events: together cover the whole sample space

Exam tip: Mutually exclusive and independent are different: mutually exclusive events (with non-zero probability) can't be independent.

Conditional probability and expected value

Conditional probability P(A | B) = P(A ∩ B) ÷ P(B) is the chance of A once we know B has happened. Expected value is the long-run average, Σ x·P(x).

What it means

  • Knowing B shrinks the sample space to B.
  • If A and B are independent, P(A | B) = P(A).
  • E(X) = Σ x·P(x); for a fair die, 3.5.
  • Expected value need not be a possible outcome.
Example 1: Conditional
  • P(A ∩ B) = 0.2, P(B) = 0.5

Answer: P(A | B) = 0.4

Example 2: Expected value
  • Win ₹100 with probability 0.1, else nothing

Answer: E = ₹10

Related terms

  • Bayes' theorem: reverses a conditional probability

Exam tip: Divide by the probability of the condition (the 'given' event), not of the other event.

Memory tricks

And vs or'Or' means add (minus the overlap); 'and' means multiply (if independent).

P(A ∪ B) = P(A) + P(B) − P(A ∩ B); P(A ∩ B) = P(A)P(B) for independent events.

At least oneAt least one = one minus none.

P(at least one) = 1 − P(none).

Odds to probabilityOdds 3 : 5 → 3 out of 8 (add both sides for the total).

Odds a : b in favour → a/(a + b).

Try 3 CA Foundation-style questions

Q1. If P(A) = 0.3, then P(not A) is

  1. 0.3
  2. 1.3
  3. 0
  4. 0.7
Show answer

Answer: (4) 0.7

P(Aᶜ) = 1 − P(A) = 0.7.

Q2. Two cards are drawn from a pack of 52 without replacement. The probability that both are aces is

  1. 1/169
  2. 1/13
  3. 4/52
  4. 1/221
Show answer

Answer: (4) 1/221

P = (4/52) × (3/51) = 12/2652 = 1/221.

Q3. If the odds in favour of an event are 3 : 5, its probability is

  1. 3/5
  2. 3/8
  3. 5/8
  4. 5/3
Show answer

Answer: (2) 3/8

Odds 3 : 5 means 3 favourable for every 5 unfavourable: P = 3 ÷ (3 + 5) = 3/8.

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