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Could anyone show me the detailed explanation of this? Thank you! Let A and B be events that the S&P index and the DAX index
Could anyone show me the detailed explanation of this?
Thank you!
Let A and B be events that the S&P index and the DAX index close higher tomorrow respectively. Suppose that P(A) =0.4. Given that at least one of the events happens, there is a 1/3 chance that the S&P index closes lower tomorrow. Given that the DAX index closes lower tomorrow, there is a 1/5 chance that the S&P index closes higher tomorrow.
(a) Construct a probability table.
A | A' | Total | |
B | |||
B' | |||
Total |
(b) What is P(B|A)? Are the events A and B independent? Explain.
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