FRM-Quants

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

FRM-Quants

Postby anbu.edu » Tue Mar 19, 2013 4:20 pm

Can we say P(A|B) =P(B|A)
and can you please explain the concept behind P(B) = [P(B|A) × P(A)] + [P(B|AC) × P(AC)]

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

FRM-Quants

Postby content.pristine » Thu Mar 21, 2013 11:28 am

Dear Anbu,
P(A/B) is NOT the same as P(B/A). (That's why we have Bayes Theorem)
Also, the equation you mentioned is specific to a particular question.. It is not a standard formula


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