
Section 07: Probability & Statistics
Test your understanding of Basic Probability
If \(P(A) = 0.4\) and \(P(B) = 0.3\) and A and B are independent, find \(P(A \cap B)\).
Use the complement rule: If \(P(\text{rain}) = 0.25\), find \(P(\text{no rain})\).
If \(P(A) = 0.5\), \(P(B) = 0.4\), and \(P(A \cap B) = 0.2\), find \(P(A \cup B)\).
Are events A and B from question 3 independent? Why or why not?
Let’s clarify notation before counting gets harder.
Combinatorics is essential for calculating probabilities on the exam!
If you make sequential choices with \(n_1, n_2, ..., n_k\) options:
\[\text{Total possibilities} = n_1 \times n_2 \times ... \times n_k\]
Example: Creating an outfit
Total outfits: \(4 \times 3 \times 2 = 24\)
A license plate has:
Question: How many different plates are possible?
With repetition allowed: \[26 \times 26 \times 26 \times 10 \times 10 \times 10 \times 10 = 26^3 \times 10^4 = 175,760,000\]
Without repetition: \[26 \times 25 \times 24 \times 10 \times 9 \times 8 \times 7 = 78,624,000\]
Definition: Factorial
\[n! = n \times (n-1) \times (n-2) \times \dots \times 1\]
Special cases: \(0! = 1\) and \(1! = 1\)
Examples:
Definition: Permutation
A permutation is an arrangement of objects where order matters.
\[P(n,r) = \frac{n!}{(n-r)!}\]
= Number of ways to arrange \(r\) objects from \(n\) distinct objects
Example: How many ways can 3 people win gold, silver, and bronze from 8 competitors?
\[P(8,3) = \frac{8!}{5!} = \frac{8 \times 7 \times 6 \times 5!}{5!} = 8 \times 7 \times 6 = 336\]
Example 1: Arrange all letters in “MATH”
\[P(4,4) = 4! = 24 \text{ arrangements}\]
Example 2: How many 4-digit PINs with no repeated digits?
\[P(10,4) = \frac{10!}{6!} = 10 \times 9 \times 8 \times 7 = 5,040\]
Example 3: A president, VP, and treasurer from 12 candidates?
\[P(12,3) = 12 \times 11 \times 10 = 1,320\]
Definition: Combination
A combination is a selection of objects where order doesn’t matter.
\[C(n,r) = \binom{n}{r} = \frac{n!}{r!(n-r)!}\]
= Number of ways to choose \(r\) objects from \(n\) distinct objects
Insight: Each combination corresponds to \(r!\) permutations
\[C(n,r) = \frac{P(n,r)}{r!}\]
Example 1: Choose 3 students from 10 for a committee
\[C(10,3) = \binom{10}{3} = \frac{10!}{3! \cdot 7!} = \frac{10 \times 9 \times 8}{3 \times 2 \times 1} = 120\]
Example 2: Choose 5 cards from a 52-card deck
\[C(52,5) = \binom{52}{5} = \frac{52!}{5! \cdot 47!} = \frac{52 \times 51 \times 50 \times 49 \times 48}{120} = 2,598,960\]
If order matters, use permutations. If not, use combinations.

Work individually
For each situation, write either permutation or combination and compute:
For equally likely outcomes:
\[P(A) = \frac{\text{Number of favorable outcomes}}{\text{Total number of outcomes}}\]
Question: Probability of being dealt exactly 2 hearts in a 5-card hand?
Favorable: Choose 2 hearts from 13, AND 3 non-hearts from 39
\[\binom{13}{2} \times \binom{39}{3} = 78 \times 9,139 = 712,842\]
Total outcomes: Choose any 5 cards from 52
\[\binom{52}{5} = 2,598,960\]
Probability: \(P(\text{exactly 2 hearts}) = \frac{712,842}{2,598,960} \approx 0.274\)
A committee of 4 must be chosen from 6 men and 5 women.
Question: Probability that the committee has exactly 2 women?
Do you see a pattern here?
Box contains 20 items: 4 are defective. We select 3 items randomly:
\[P = \frac{\binom{16}{3}}{\binom{20}{3}} = \frac{560}{1140} = \frac{14}{28.5} \approx 0.491\]
\[P = 1 - P(\text{none}) = 1 - 0.491 = 0.509\]

You’ve been computing \(\binom{n}{r}\) all session — for card hands, committees, and defective items. Pascal’s triangle arranges all these values in a pattern that makes them easy to look up and verify.
The recursive property — each entry is the sum of the two above it:
\[\binom{n}{r} + \binom{n}{r+1} = \binom{n+1}{r+1}\]
Why this matters: Instead of computing \(\binom{5}{2} = \frac{5!}{2!\,3!}\) from scratch, find row \(n=5\) and look up the entry for \(r=2\) → 10. This saves time when verifying combination calculations.
Or you use your calculator or R to compute \(\binom{n}{r}\).
Work in pairs
Problem 1: A password must have 3 letters followed by 2 digits. a) How many passwords are possible (with repetition)? b) How many if no repetition is allowed?
Problem 2: From 8 candidates, we select a president, VP, secretary, and treasurer. How many ways?
Problem 3: A lottery requires choosing 6 numbers from 49. How many possible combinations?
Work individually, then compare
A committee of 4 is chosen from 10 people, including 3 finance majors.
Work individually
An ice cream shop offers 12 flavors. You order a bowl with 3 scoops.
Work individually
A class has 15 students: 9 from Business and 6 from Economics. The professor randomly forms a project team of 5 students.
Think individually, then work in groups
An event team must choose from 9 volunteers:
For each part, explain clearly whether order matters and why.
Work in pairs
A sales representative must visit 3 cities. She can travel:
Work in pairs
A student has 8 different textbooks.
Work individually, then compare
A company raffle has 30 tickets. You bought 4 tickets. Three winning tickets are drawn at random.
Work in groups
A company assigns 6-character access codes using digits 0-9 and uppercase letters A-Z (36 characters total).
Work individually
A shipment contains 25 items, of which 5 are defective. A quality inspector selects 4 items at random.
Work individually
Homework
Complete Tasks 07-03:
Session 07-03 - Combinatorics & Counting | Dr. Nikolai Heinrichs & Dr. Tobias Vlćek | Home