Graduate Management Admission Test (GMAT) Practice Test

To use sequential probability when calculating events over multiple draws, what should you use?

1. Total possible outcomes / desired outcomes

2. Desired outcomes / total possible outcomes

3. Both expected outcomes divided by each other

4. The average of possible outcomes

The correct answer is: Desired outcomes / total possible outcomes

To analyze sequential probability effectively when calculating events over multiple draws, it is important to understand that such calculations involve determining the likelihood of specific outcomes occurring in succession. The correct approach here is to focus on the ratio of desired outcomes to total possible outcomes. This method allows you to assess the chances of a particular event happening by highlighting how many successful results exist out of all potential results. In this context, you are determining the probability of one event influencing the next when drawing from a population where the total number of outcomes and desired outcomes may change as each draw occurs. By using the formula of desired outcomes divided by total possible outcomes, you establish a clear understanding of the success rate of each sequential event. This directly correlates the success of one event to the likelihood of subsequent events based on the updated probabilities after each draw. Employing this ratio ensures that you have a mathematically sound method to gauge probabilities, especially as events unfold and the sample space is affected by previous draws. Understanding this is crucial as it lays the foundation for more complex probability calculations in various situations.