bmaggie

There is a 30% probability of rain this afternoon. There is a 10% probability of having an umbrella if it rains. What is the chance of it raining and having an umbrella?

A) 40%.

B) 33%.

C) 3%.

bmaggie

There is a 30% probability of rain this afternoon. There is a 10% probability of having an umbrella if it rains. What is the chance of it raining and having an umbrella?

A) 40%.

B) 33%.

C) 3%.

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P(A) = 0.30. P(B | A) = 0.10. P(AB) = (0.30)(0.10) = 0.03 or 3%.

bmaggie

Which of the following is a joint probability? The probability that a:

A) stock pays a dividend and splits next year.

B) company merges with another firm next year.

C) stock increases in value after an increase in interest rates has occurred.

bmaggie

Which of the following is a joint probability? The probability that a:

A) stock pays a dividend and splits next year.

B) company merges with another firm next year.

C) stock increases in value after an increase in interest rates has occurred.

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A joint probability applies to two events that both must occur.