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Basic Question 1 of 7
Suppose that A and B are independent events. The probability of A is 0.6 and the probability of B is 0.8. What is the probability either A or B will occur?
B. 0.48
C. 0.92
A. 0.14
B. 0.48
C. 0.92
User Contributed Comments 9
| User | Comment |
|---|---|
| dipta | P(not A)= .4 * P(not B) = .2 == .08. Therefore P(A or B) = 1 - P(not A and not B) = .92 |
| Gina | or p(A)+p(B)-p(AandB) 0.6+0.8-(0.6*0.8)=0.92 |
| aakash1108 | @dipta - good view. complement. |
| rethan | What is the difference between independent and mutually exclusive? |
| ilgibe | Indipendent: P(spades) and P(ace) mutually exclusive: P(6) or P(5) rolling a dice |
| 2014 | Either is used so, (add ) multiply and minus |
| johntan1979 | Independent: P(AB) = P(A|B) x P(B) = P(A) x P(B) Mutually exclusive: P(AB) = 0 |
| cfastudypl | Gina, on spot and it is the quickest way to answer the question, well done. |
| choas69 | @johntan correction: independent then P(AB)=P(A)*P(B) dependent then P(AB)= P(A)*P(B/A) or P(B)*P(A/B) thats what he meant to write. |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
demonstrate the application of the multiplication and addition rules for probability;
CFA® 2024 Level I Curriculum, Volume 1, Module 3.