Properties of Probability by Edu Pristine

Author of lecture Properties of Probability

Edu Pristine

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... complete sample space (Sum of probability = 1) Independent Events: One event occurring has no effect on the other event
The probability of any event A: ...

... are independent. What is the probability that both issuers avoid default during the 1st year. ...

... This implies that first does not default AND second does not default ...

... For Quantitative Analysis-I (Confidential) ...

... (HNI) and second for Low Net Worth Individuals (LNI) HNI portfolio contains 5 bonds and 7 stocks and LNI contains 6 bonds and ...

... the required probability = (7/12) × (12/18) + (5/12) × (11/18) = 139/216 = 0.6435 ...

... of events A and B is the product of conditional probability of B, given A has occurred and the unconditional probability of event A. We know that P(AB) = P(B/A) * P(A) Also P(BA)= P(A/B) * P(B) ...

... treatment is 0.6. How many patients (on an average) out of the 100 patients selected at random would be cured? A.30 B.40 C. 37.5 D.42.5 Some time later, one of the ...

... + P(Cure/Old) * P(Old) = 0.375 So out of 100 patients 37.5 will get cured C. Apply Bayes’ Theorem ...

... if the subsidiary defaults. Assume that the parent had a 1 year PD = 0.5% and the subsidiary has ...