Concept:
Probability - Conditional Probability.
The formula for conditional probability is:
$$ P(E|F) = \frac{P(E \cap F)}{P(F)} $$
This can be rearranged to find the intersection: $P(E \cap F) = P(E|F) \cdot P(F)$.
Step 1: List all given probabilities.
- $P(A) = \frac{1}{8}$
- $P(A|B) = \frac{1}{4}$
- $P(B|A) = \frac{2}{5}$
Step 2: Find the intersection probability $P(A \cap B)$.
Use the conditional probability formula oriented around $P(B|A)$:
$$ P(B|A) = \frac{P(A \cap B)}{P(A)} $$
Rearrange to solve for $P(A \cap B)$:
$$ P(A \cap B) = P(B|A) \cdot P(A) $$
Substitute the known values:
$$ P(A \cap B) = \left(\frac{2}{5}\right) \cdot \left(\frac{1}{8}\right) $$
$$ P(A \cap B) = \frac{2}{40} = \frac{1}{20} $$
Step 3: Calculate $P(B)$ using the other conditional probability.
Now use the conditional probability formula oriented around $P(A|B)$:
$$ P(A|B) = \frac{P(A \cap B)}{P(B)} $$
Rearrange to solve for $P(B)$:
$$ P(B) = \frac{P(A \cap B)}{P(A|B)} $$
Step 4: Substitute and solve.
Substitute $P(A \cap B) = \frac{1}{20}$ and $P(A|B) = \frac{1}{4}$ into the equation:
$$ P(B) = \frac{\frac{1}{20}}{\frac{1}{4}} $$
Multiply by the reciprocal of the denominator:
$$ P(B) = \frac{1}{20} \cdot 4 $$
$$ P(B) = \frac{4}{20} = \frac{1}{5} $$