CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

Given that P(Jane goes to Miami) = 50% and P(Jane attends the Super Bowl given she goes to Miami) = 20%, then P(Jane goes to Miami AND attends the Super Bowl) = ______.

A. 10%
B. 45%
C. 40%
Correct Answer: A

From the tree diagram, P(Jane goes to Miami AND she attends the Super Bowl) = P(Jane goes to Miami) times P(Jane attends Super Bowl given she goes to Miami) = (0.5)(0.2) = 0.1. So, P(Jane goes to Miami AND attends Super Bowl) = 10%.

User Contributed Comments 8

User Comment
jmcarr02 multiplication rule for independent events...
solnce No, this a multiplication rule for dependent events. Jane attends Super Bowl given she attends Super Bowl is a conditional event.
Nightsurfer As if she wouldn't go to the SuperBowl.
o123 ...maybe she just went for the after parties!
fedha o123 very funny!!

P(JS) = P(J)*P(J|S)
P(JS) = 0.5*0.2
P(JS) = 0.10 ~10%
sgossett86 I want to live like jane after i get my cfa
JMORALES Jane attends super bowl given she attends super bowl = Jane attends super bowl given she goes to Miami... ??? These are not the same, yet the question and answer makes them the same??
mdejesus Making the tree diagrams is way easier for me than thinking of the formulas.
You need to log in first to add your comment.