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.

Question

Melanie Richardson

Mathematics

5 February, 03:54

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.

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Answers (1)

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Alicia Gentry · 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