- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 3. Probability Concepts
- Subject 2. Unconditional, Conditional, and Joint Probabilities
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) = ______.
B. 45%
C. 40%
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. |