QUANT

pooja923
Good Student
Posts: 25
Joined: Fri Mar 11, 2016 11:38 am

QUANT

Postby pooja923 » Thu May 12, 2016 7:19 am

The probability of each of three independent events is shown in the table below.
Event Probability of Occurrence
A 25%
B 15%
C 42%
What is the probability of A and C occurring, but not B?
1. 10.5%.
2. 8.9%.
3. 3.8%.

Explanation
Using the multiplication rule: (0.25)(0.42) - (0.25)(0.15)(0.42) = 0.08925 or 8.9%
Kindly explain why have they subtracted ABC from AC.

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Re: QUANT

Postby edupristine » Thu May 12, 2016 9:16 am

Hi Pooja

Here events are independent so, probability of (A and C and non B)
= 25%*42%*(1-15%)
=0.105*0.85
=0.08925
=8.9%

pooja923
Good Student
Posts: 25
Joined: Fri Mar 11, 2016 11:38 am

Re: QUANT

Postby pooja923 » Thu May 12, 2016 1:04 pm

Thanks


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