FRM-Can you please ans this question

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

FRM-Can you please ans this question

Postby anbu.edu » Wed Mar 06, 2013 11:12 pm

If the outcome of event A is not affected by event B, then events A and B are said to be:

A) statistically independent.
B) mutually exclusive.
C) collectively exhaustive.
D) conditionally dependent.
Is {B} correct?

content.pristine
Finance Junkie
Posts: 356
Joined: Wed Apr 11, 2012 11:26 am

FRM-Can you please ans this question

Postby content.pristine » Mon Mar 11, 2013 12:16 pm

Hi Anbu,

The answer is A: Independent.
For example, the probability it will rain today is not affected by the probability I will chose a black top from my wardrobe! :-)
Mutually exclusive means that both events cannot occur at the same time. For example, the probability I roll two dice, it is impossible that the sum can be both 6 and 8 at the same time. Those are mutually exclusive.

Hope this helps!


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