CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

Suppose that the probability of A is 0.80 and the probability of B is 0.60. If A and B are independent events, what is the probability of A or B?
A. 0.48
B. 0.80
C. 0.92
Explanation: Since A and B are independent events, P(A) = P(A|B) = 0.8 and P(AB) = P(A|B)P(B) = 0.80 x 0.60 = 0.48, so P(A or B) = P(A) + P(B) - P(AB) = 0.80+0.60-0.48=0.92.

User Contributed Comments 3

User Comment
examcfa P(A or B) = P(A)+ P(B) - P(A*B) , independent
mc25456 A and B are independent events, so P(A)=P(A|B)=0.8 and P(B)=P(B|A)=0.6
weiwei Fot this one, P(A)=0.8 then P(A or B) > 0.8
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