The probabilities that stock A will rise in price is 0.52 and that stock B will
ID: 3430532 • Letter: T
Question
The probabilities that stock A will rise in price is 0.52 and that stock B will rise in price is 0.48. Further, if stock B rises in price, the probability that stock A will also rise in price is 0.68.
What is the probability that at least one of the stocks will rise in price? (Round your answer to 2 decimal places.)
The probabilities that stock A will rise in price is 0.52 and that stock B will rise in price is 0.48. Further, if stock B rises in price, the probability that stock A will also rise in price is 0.68.
Explanation / Answer
the probability that at least one of the stocks will rise in price
= P(AUB)
=P(A)+P(B)-P(AB)
= 0.52+0.48-0.68(0.48)
= 1.00-0.3264
=0.6736
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No P(AB) not equals 0
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P(A/B) = 0.68
But P(A) is not 0.68
Hence not independent.
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