- 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
For the tree diagram shown at the right,
B. 3/7
C. 2/3

P(B | A) = ______
A. 1/3
B. 3/7
C. 2/3
Correct Answer: C
From the tree diagram, we know that 0.3 times P(B | A) = 0.2. Now, 0.3x = 0.2 yields x = 0.2/0.3 = 2/3. Thus, P(B | A) = 2/3.
User Contributed Comments 6
User | Comment |
---|---|
gth763s | P(B|A)=0.2, P(AB)=.06 |
mordja | No P(B|A) = 2/3 P (AB) = 0.2 |
fedha | Here is how I solved the problem P(B|A) = P(BA)/P(A) P(B|A) = 0.2/0.3 P(B|A) = 0.667 ~ 2/3 |
Scc0813 | Why is 0.2 P(AB) and not P(B|A)? |
choas69 | P(AB) = P(A) x P(B/A) 0.2 = 0.3 x P(B/A) P(B/A)= 0.2/0.3 |
choas69 | scc 0.2 is the result of A and B together not B given A |