- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 4. Probability Trees and Conditional Expectations
- Subject 2. Probability Trees and Conditional Expectations
CFA Practice Question
Jack wakes up late on average 3 days in every 5. If Jack wakes up late, the probability he's late for school = 9/10. If Jack does not wake up late, the probability he's late for school = 3/10. One what percent of days does Jack get to school on time?
A. 17%
B. 28%
C. 34%
Explanation: The probability he wakes up late = 3/5 and the probability he wakes up on time = 2/5. The tree diagram looks like this:
So the probability that Jack gets to school on time = 3/50 + 14/50 = 34%. Jack gets to school on time 34% of the time.
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