CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

Supposing that P(A) = 0.2 and P(B|A) = 0.6, find P(AB).
A. 0.12
B. 0.30
C. 0.80
Explanation: The correct answer is P(AB) = P(B|A) P(A) = 0.6 x 0.2 = 0.12.

User Contributed Comments 3

User Comment
poomie83 joint probablity
gfenney But why is p(B) conditional on A having occured?
myron Because that's the formula: P(A and B) = P(A) P(B|A)
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