- CFA Exams
- CFA Exam: Level I 2021
- Study Session 2. Quantitative Methods (1)
- Reading 8. Probability Concepts
- Subject 2. Unconditional, Conditional, and Joint Probabilities

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**CFA Practice Question**

The probability of the occurrence of an airplane crash and a successful resolution to a labor strike is called ______.

B. a joint probability

C. a conditional probability

A. an unconditional probability

B. a joint probability

C. a conditional probability

Correct Answer: B

A joint probability takes the form of P(AB), the probability that event A (an airplane crash) and event B (the resolution of a strike) both happen.

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**User Contributed Comments**
16

User |
Comment |
---|---|

dipta |
How are these two related |

LogicMan |
they are not necessarily related, but can still have a joint probability. |

Hamma |
this is just a dumb question i think.. Two events are not related in context, but they are jointed since the question ties two probabilty together by saying 'and' ... |

jminard |
'and' cannot be said? "the probability of you passing cfa exam this June AND I lose money in the stock market" is still meaningful, although they are not related. |

tssverma |
last question was implicit and this question is explicit to an extent that it doesnot allow the candidate to use their prior knowledge of business domain. |

StanleyMo |
a lot of tricky questions! |

aakash1108 |
it is a joint proability simply because it has the word "AND" in it. It doesn't matter if the probability of these events are close to "0" or "0" itself. i.e. P(AB)=0 Considering P(A)= P(occurrence of an airplane crash) and P(B) = P(successful resolution to a labor strike) |

alallstar |
this is far from a dumb question. It only tricks those who don't know the meaning of joint probability and unconditional probability. |

swisha |
this is not a dumb question. its questions like these that test your comprehension of probabilities. |

NikolaZ |
I'm afraid of flying, why did they have to ask this? :( |

2014 |
There is a good probability of such questions in exam. Given they are easy only if u know them |

dmfz |
What is the probability of Obama winning and the economy tanking going into a deeper reccesion? |

ldfrench |
^Very high, dmfz |

idzani |
the keyword here is AND. |

farhan92 |
shouldn't the answer be the power of unions.. |

CFAJ |
all of the union members that were leading the strike died in the plane crash and the remaining members weren't super into the strike in the first place so the events are not independent |