alison has all her money invested in two mutual funds, A and B. She knows that there is a 40% chance that fund A will rise in price, and a 60% chance that fund B will rise in price fhat fund A rises in price. There is also a 20% chance that fund b will rise in price. What is the probablity that at least one of the funds will rise in price?

Question

contestada

Respuesta :

TaeKwonDoIsDead TaeKwonDoIsDead · Answer 1 · 2019-10-06T15:04:51+02:00

Answer:

0.36

Step-by-step explanation:

Probability that A will rise: P(A) = 0.4

Probability that B rises given that A rise: P(A|B) = 0.6

Probability B will rise: P(B) = 0.2

Now,

P(A and B) = P(A) * P(A|B) = 0.4 * 0.6 = 0.24

Probability that at least one fund will rise:

P(A or B) = P(A) + P(B) - P(A and B) = 0.4 + 0.2 - 0.24 = 0.36

So,

Probability that at least one of the funds will rise in price = 0.36

Answer Link

lublana lublana · Answer 2 · 2019-10-22T19:00:44+02:00

Answer:

0.36

Step-by-step explanation:

We are given that Alison has all her money invested in two mutual funds A and B.

Probability that A will rise= [tex]P(A)=0.40[/tex]

Probability that B rises given that A rise =[tex]P(B/A)=0.60[/tex]

Probability that B will rise[tex]P( B)=0.20[/tex]

We have to find the probability that atleast one of the funds will rise in price.

[tex]P(B/A)=\frac{P(A\cap B)}{P(A)}[/tex]

Substitute the values then we get

[tex]0.60=\frac{P(A\cap B)}{0.40}[/tex]

[tex]P(A\cap B)=0.60\times 0.40=0.24[/tex]

[tex]P(A\cup B)=P(A)+P(B)-P(A\cap B)[/tex]

[tex]P(A\cup B)=0.40+0.20-0.24=0.36[/tex]

Hence, the probability that atleast one of the funds will rise in price=0.36