Week 2
Aug 27, 2025
In today’s class we will:
Textbook Reference: SDG Chapter 1.7-1.9; JA Chapter 4
Events A and B are independent, if and only if \[P(A \cap B)=P(A)\times P(B).\]
Etchnicity | Vaccine Hesitant | Not Hesitant |
---|---|---|
White British or Irish | 1362 | 7368 |
Other white background | 71 | 199 |
Mixed | 55 | 115 |
Asian or Asian British - Indian | 37 | 143 |
Asian or Asian British - Pakistani/Bangladeshi | 85 | 115 |
Asian or Asian British - other | 15 | 95 |
Black or Black British | 136 | 54 |
Other Ethnic Group or Not Specified | 31 | 119 |
Most people who have a negative test result (e.g., mammogram looks good or COVID test negative) don’t worry any longer about whether they really do have disease. Are they right not to worry? Suppose our 40 year old woman with a baseline 1% breast cancer risk instead had a negative (all clear) mammogram. What is the updated probability she has breast cancer given this test result?
We know :
Baseline probability of cancer \(P(A)=0.01\) (prevalence)
Bayes’ Theorem: \(P(A \mid B)=\frac{P(B \mid A)P(A)}{P(B)}\).
Sensitivity is \(P(B \mid A)=0.85\), Specificity is \(P(B^c \mid A^c)=0.90\)
Product Rule If there are \(m\) choices for the first action and \(n\) choices for the second actions, the number of possible choices for both actions is \(m\times n\).
Sum Rule If there are \(m\) choices for the first action, \(n\) choices for the second actions, and only one of the actions can be taken, the number of possible choices is \(m+n\).
Number of Permutations (ordered subset) The number of permutations of size \(k\) that can be formed from \(n\) objects (\(k\leq n\)) is \[P_{n,k}=\frac{n!}{(n-k)!}\]
Number of Combinations (unordered subset) The number of combinations of size \(k\) that can be formed from \(n\) objects (\(k\leq n\)) is \[\begin{pmatrix}n\\k\end{pmatrix}=\frac{P_{n,k}}{k!}=\frac{n!}{(n-k)!}\]
The number \(\begin{pmatrix}n\\k\end{pmatrix}\) is also called binomial coefficient.
Originated from Binomial Theorem: For all number \(x\) and \(y\) and each positive integer \(n\), \[(x+y)^n=\sum_{k=0}^n\begin{pmatrix}n\\k\end{pmatrix}x^k y^{n-k}.\]
Note that binomial coefficient have symmetric relation such that \[\begin{pmatrix}n\\0\end{pmatrix}=\begin{pmatrix}n\\n\end{pmatrix}=1\quad \text{and}\quad \begin{pmatrix}n\\k\end{pmatrix}=\begin{pmatrix}n\\n-k\end{pmatrix}\]
The number of ways that \(n\) objects can be split into \(m\geq 2\) different subsets of size \(k_1,k_2,\ldots,k_m\), where \(k_1+k_2+\ldots+k_m=n\), is \[\begin{pmatrix}n\\k_1,k_2,\ldots,k_m\end{pmatrix}=\frac{n!}{k_1!k_2!\cdots k_m!}.\] As you may have guessed, this is called multinomial coefficient.
Originated from Multinomial Theorem: For all number \(x_1,\ldots,x_k\) and each positive integer \(n\), \[(x_1+\cdots+x_m)^n=\sum_{j\in\mathcal{J}}\begin{pmatrix}n\\k_1,k_2,\ldots,k_m\end{pmatrix}x_1^{k_1}x_2^{k_2}\cdots x_k^{k_1}.\] where \(\mathcal{J}\) is all possible combination of \(k_1,k_2,\ldots,k_m\) such that \(k_1+k_2+\ldots+k_m=n\).
ECON2250 Statistics for Economics - Fall 2025 - Maghfira Ramadhani