- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 3. Probability Concepts
- Subject 4. Multiplication Rule for Independent Events
CFA Practice Question
Suppose that P(A and B) = 0.08 and P(B) = 0.2. If A and B are independent, what is P(A)?
B. 0.30
C. 0.40
A. 0.12
B. 0.30
C. 0.40
Correct Answer: C
If A and B are independent then P(A) = P(A|B) = P(AB)/P(B) = 0.08/0.20 = 0.40.
User Contributed Comments 1
| User | Comment |
|---|---|
| lordcomas | P(A and B) = P(A) x P(B) then: 0.08 = P(A) x 0.2 solve for P(A)... so: P(A) = 0.08 / 0.2 P(A) = 0.4 |