## QUANTS

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

### QUANTS

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

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

Return to “CFA Level I”

## Disclaimer

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.