The probabilities that stock A will rise in price is 0.43 and that stock B will
ID: 3150107 • Letter: T
Question
The probabilities that stock A will rise in price is 0.43 and that stock B will rise in price is 0.57. Further, if stock B rises in price, the probability that stock A will also rise in price is 0.43. a. What is the probability that at least one of the stocks will rise in price? (Round your answer to 2 decimal places.) Probability b. Are events A and B mutually exclusive? Yes because P(A B) Picture 0 No because P(A B) Picture 0 Yes because P(A | B) = P(A) No because P(A | B) P(A) c. Are events A and B independent? No Picture Yes Picture Yes because P(A B) = 0 No because P(A B) 0
Explanation / Answer
a. What is the probability that at least one of the stocks will rise in price? (Round your answer to 2 decimal places.) P( B / A) = 0.43 = P(A and B) / 0.43
P(A and B) = 0.1849
P( at least one ) = 0.43 + 0.57 - 0.1849 = 0.8151
b. Are events A and B mutually exclusive?
No because P(A B) Picture 0
c. Are events A and B independent? Yes because P(A | B) = P(A)
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