UPSC MainsMANAGEMENT-PAPER-II202210 Marks
Q1.

House Collapse Probability: Bayesian Analysis

A newly constructed house can collapse due to fault in its design. It can also collapse even if it does not have a design fault. The probability that the design of the newly constructed house is faulty is 0.1. The probability that this house collapses if the design is faulty is 0.95, whereas, the probability that the house collapses without any fault in design is 0.45. It is seen that the house has collapsed. What is the probability that it is due to fault in design?

How to Approach

This question tests the application of Bayes' Theorem, a fundamental concept in probability and statistics. The approach should involve clearly defining the events, stating Bayes' Theorem, and then substituting the given probabilities to calculate the required conditional probability. The answer should demonstrate a clear understanding of conditional probability and its practical application in a real-world scenario. A step-by-step calculation is crucial for clarity and accuracy.

Model Answer

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Introduction

In risk assessment and decision-making, understanding the probability of an event given certain conditions is paramount. This is particularly relevant in fields like engineering and construction, where failures can have significant consequences. The problem presented is a classic application of Bayes' Theorem, which allows us to update our belief about an event based on new evidence. Bayes' Theorem is a mathematical formula for determining conditional probability – the probability of an event occurring given that another event has already occurred. In this case, we need to determine the probability that a house collapse is due to a design fault, given that the house has already collapsed.

Understanding the Problem

Let's define the events:

  • D: The design of the house is faulty.
  • C: The house collapses.

We are given the following probabilities:

  • P(D) = 0.1 (Probability that the design is faulty)
  • P(C|D) = 0.95 (Probability that the house collapses given the design is faulty)
  • P(C|¬D) = 0.45 (Probability that the house collapses given the design is NOT faulty)

We need to find P(D|C), the probability that the design is faulty given that the house has collapsed.

Bayes' Theorem

Bayes' Theorem is stated as:

P(D|C) = [P(C|D) * P(D)] / P(C)

Where P(C) is the probability of the house collapsing, which can be calculated using the law of total probability:

P(C) = P(C|D) * P(D) + P(C|¬D) * P(¬D)

Calculating P(C)

First, we need to find P(¬D), the probability that the design is not faulty:

P(¬D) = 1 - P(D) = 1 - 0.1 = 0.9

Now, we can calculate P(C):

P(C) = (0.95 * 0.1) + (0.45 * 0.9) = 0.095 + 0.405 = 0.5

Calculating P(D|C)

Now we can apply Bayes' Theorem:

P(D|C) = (0.95 * 0.1) / 0.5 = 0.095 / 0.5 = 0.19

Conclusion

Therefore, the probability that the house collapsed due to a fault in the design is 0.19 or 19%.

Conclusion

In conclusion, using Bayes' Theorem, we determined that even though the probability of a faulty design is only 10%, the probability that a collapse is *due* to a faulty design, given that a collapse has occurred, is 19%. This highlights the importance of considering prior probabilities and conditional probabilities when assessing risk and causality. This approach is crucial in various fields, including quality control, medical diagnosis, and financial risk management.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Bayes' Theorem
A mathematical formula for calculating conditional probability: P(A|B) = [P(B|A) * P(A)] / P(B), where P(A|B) is the probability of event A occurring given that event B has occurred.
Law of Total Probability
The law of total probability states that if events B1, B2, ..., Bn are mutually exclusive and collectively exhaustive (meaning one of them must occur), then the probability of event A can be calculated as: P(A) = P(A|B1)P(B1) + P(A|B2)P(B2) + ... + P(A|Bn)P(Bn).

Key Statistics

According to the National Safety Council (NSC), construction falls accounted for 38.9% of all fatal work injuries in 2022.

Source: National Safety Council, 2023

A study by the Indian Institute of Technology (IIT) Madras found that approximately 60% of buildings in India are not earthquake-resistant.

Source: IIT Madras, 2018 (Knowledge cutoff)

Examples

Medical Diagnosis

Bayes' Theorem is widely used in medical diagnosis. For example, if a test for a disease has a certain false positive and false negative rate, Bayes' Theorem can be used to calculate the probability that a patient actually has the disease given a positive test result.

Frequently Asked Questions

What is the difference between conditional probability and joint probability?

Conditional probability is the probability of an event occurring given that another event has already occurred (P(A|B)). Joint probability is the probability of two events both occurring (P(A and B)).

Topics Covered

StatisticsEngineeringProbabilityBayes TheoremConditional ProbabilityRisk Assessment