Probability, Combinatorics

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Theory

Derangements
If n distinct items are arranged, the number of ways they can be arranged so that they do
(−1)n
not occupy their intended spot is D = n!( 0!1 - 1
1!
+ 1
- 1
2! 3!
+ .... + n!
)

Theory

If the probability of an event occurring is p, then the probability that the event will
occur r times in n trials is given by = n Cr pr (1 − p)n−r
If p is the probability of an event, then odds in favor of an event are p / (1 – p).
Conversely, the odds against are (1-p)/p.
Say E1 , E2 … .En are mutually exclusive exhaustive events with probabilities
p1 , p2 ....pn and expected values e1 , e2 ....en then Expected payoff = ∑i=1 n pi ei

Formula

Partitioning:
Number of ways to partition n identical things in r distinct slots is given by:
=n+r−1 Cr−1
Number of ways to partition n identical things in r distinct slots so that each slot
gets at least 1: =n−1 Cr−1
Number of ways to partition n distinct things in r distinct slots is given by: r n
Number of ways to partition n distinct things in r distinct slots where arrangement
(n+r−1)!
matters: (r−1)!

Formula

Arrangement: n items can be arranged in n! ways

Permutation: A way of selecting and arranging r objects out of a set of n objects:
nP = n!
r (n−r)!
Combination: A way of selecting r objects out of n (arrangement does not matter) 
n!
n
Cr = r!(n−r)!
Selecting r objects out of n is same as selecting (n-r) objects out of n n Cr =
n
Cn−r
$$\sum_{k=0}^{n}^{n}C_{k}=2^{n}$$

Theory

Both of Permutations & Combinations and Probability are extremely important topics in
CAT. We have combined both of them together because improving in P&C would help you
get better in Probability. After number systems, this is the second most important topic
for CAT preparation. Many students nd learning P&C and probability a nightmarish
experience. Many even skip this topic in frustration. We think under-preparing in P&C and
probability is one of the biggest mistakes you could make in CAT prep. This topic can be
the most rewarding topic in quant section. Unlike number systems questions, these
Online
 questions generally take lesser time to solve. Also, they are generally fairly basic in
nature. And the best part is- the more questions you solve, the better you will get at this
subject. So look through the formula list a few times and understand the formulae. But

the best way to tackle this subject is by solving questions. Solve as many as you can-
solve so many from this topic that you start to see that all of them are generally
variations of the same few themes that are listed in the formula list.

Theory

Probability of an event: If in n equally likely outcomes an event is said to have

occurred m times, then the probability of the event is P(E) = m/n
Probability of the event not occurring is P (E') = 1-m/n
Events are said to be mutually exclusive if they can never occur together. They are
said to be collectively exhaustive if together they encompass all possible
outcomes.
The sum of probabilities of mutually exclusive and exhaustive events is 1
Probability of event A or B occurring P (A or B) = P(A) + P(B) – P(A and B)
Probability of A given B = P(A and B) / P(B)
Two events are independent of each other if P(A and B ) = P (A)* P(B)

Formula

Integral Solutions
Number of positive integral solutions to x1 + x2 + x3 + ..... + xn = s where
s>=0 is s−1 Cn−1
Number of non-negative integral solutions to x1 + x2 + x3 + ..... + xn = s
where s>=0 is n+s−1
Cn−1

Theory

Rank of a word:
To get the rank of a word in the alphabetical list of all permutations of the word, start
with alphabetically arranging the n letters. If there are x letters higher than the rst letter
of the word, then there are at least x*(n-1)! Words above our word. After removing the
rst a xed letter from the set if there are y letters above the second letter then there are
y*(n-2)! words more before your word and so on. So rank of word = x*(n-1)! + y*(n-2)! + ..
+1

Theory

Circular arrangement:
Number of ways of arranging n items around a circle are 1 for n=1,2 and (n-1)! For
n>=3s. If its a necklace or bracelet that can be ipped over, the possibilities are 0.5
* (n-1)!.

Theory

Bayes theorem:
 Let E1 , E2 , E3 ... be mutually exclusive and collectively exhaustive events each with a
probability p1 , p2 , p3 ... of occurring. Let B be another event of non-zero probability such
that probability of B given E1 is q1 , B given E2 is q2 etc. By Bayes theorem:

pq
P (Ei /B) = n i i
∑j=1 pj qj

Tip

Number of diagonals in an n-sided polygon = n(n-3)/2

Formula

Arrangement with repetitions:

If x items out of n items are repeated, then the number of ways of arranging these n
items is n!
x! ways. If x items, y items and z items are repeated within n items, they can be
n!
arranged in a!b!c! ways.

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