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Understand Conditional Probability and Interpreting Independence: CCSS.Math.Content.HSS-CP.A.3 Practice Test
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Q1
Bond A has a 10% chance of default. Bond B also has a 10% chance of default. The probability that Bond A and Bond B default is 6%.
What is the probability that Bond A defaults given that Bond B defaults? Use this result to determine if the defaults of Bond A and Bond B are independent.
Bond A has a 10% chance of default. Bond B also has a 10% chance of default. The probability that Bond A and Bond B default is 6%.
What is the probability that Bond A defaults given that Bond B defaults? Use this result to determine if the defaults of Bond A and Bond B are independent.
