Question

If the probability is 0.54 that Stock A will increase in value during the next month and the probability is 0.68 that Stock B will increase in value during the next month, what is the greatest possible value for the probability that neither of these two events will occur.

Answer 1

P(A) =0.54

P(B)= 0.68

P'(A)= 1-0.54 = 0.46

P'(B)= 1- 0.68 = 0.32

The probability of neither of both event will occur:

= P'(A)×P'(B)

=0.46 × 0.32

=0.1472