QUANTS

anbu.edu
Finance Junkie
Posts: 205
Joined: Mon Feb 04, 2013 3:35 pm

QUANTS

Postby anbu.edu » Mon Oct 14, 2013 12:30 pm

A joint probability of A and B must always be:
A) greater than or equal to the conditional probability of A given B.
B) less than or equal to the conditional probability of A given B.
C) greater than or equal to than the probability of A or B.
D) less than the probability of A and the probability of B.
View Answer and Explanation
By the formula for joint probability: P(AB)=P(A|B) × P(B), since P(B) ≤ 1, then P(AB) ≤P(A|B). None of the other choices must hold.


Can anyone explain why P(B) ≤ 1.. or give other statement which is valid

pradeeppdy
Finance Junkie
Posts: 258
Joined: Thu Sep 20, 2012 3:42 pm

QUANTS

Postby pradeeppdy » Tue Oct 15, 2013 7:06 am

Probability of any event can not be greater than 1, Because sum of the probability distribution must be = 1.


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