As machine learning techniques mature and are used to tackle complex scientific problems, challenges arise such as the imbalanced class distribution problem, where one of the target class labels is under-represented in comparison with other classes. Existing oversampling approaches for addressing this problem typically do not consider the probability distribution of the minority class while synthetically generating new samples. As a result, the minority class is not represented well which leads to high misclassification error. We introduce two probabilistic oversampling approaches, namely RACOG and wRACOG, to synthetically generating and strategically selecting new minority class samples. The proposed approaches use the joint probability distribution of data attributes and Gibbs sampling to generate new minority class samples. While RACOG selects samples produced by the Gibbs sampler based on a predefined lag, wRACOG selects those samples that have the highest probability of being misclassified by the existing learning model. We validate our approach using nine UCI data sets that were carefully modified to exhibit class imbalance and one new application domain data set with inherent extreme class imbalance. In addition, we compare the classification performance of the proposed methods with three other existing resampling techniques.