CFA Practice Question

There are 410 practice questions for this study session.

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)?

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
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