Question

the probabilities that stock A will rise in price is 0.61 and that stock B will rise in price is 0.39. Further, if stock B rises in price, the probability that stock A will also rise in price is 0.59. a. What is the probability that at least one of the stocks will rise in price

Answer 1

Answer:

0.7699

Explanation:

The calculation of the probability that at least one stocks is shown below :-

∩ represents the interaction of sets.

while

∪ represents the set of all elements in the collections.

So,

P(A ∩ B) = P(B) × P(A ÷ B)

= 0.39 × 0.59

= 0.2301

P(A ∪ B) = P(A) + P(B) - P(A ∩ B)

= 0.61 + 0.39 - 0.2301

= 1 - 0.2301

= 0.7699