What is the multiplication rule for independent events?

Prepare for the PHFO Quantitative Analysis For Business Exam. Study with flashcards, multiple choice questions, hints, and explanations to ensure confidence and success in your exam!

Multiple Choice

What is the multiplication rule for independent events?

Explanation:
When two events are independent, the chance that both occur is the product of their individual probabilities. The likelihood of A and B happening together is P(A ∩ B) = P(A) × P(B). This captures the idea that knowing B did occur doesn’t change how likely A is, and vice versa. For example, flip a fair coin (P(A) = 0.5) and roll a fair die (P(B) = 1/6). The probability both happen is 0.5 × 1/6 = 1/12 ≈ 0.0833. The other expressions don’t describe the intersection probability in general: addition is related to the probability of the union (with a correction for overlap), the maximum isn’t the intersection, and subtraction isn’t a rule for the joint probability of independent events.

When two events are independent, the chance that both occur is the product of their individual probabilities. The likelihood of A and B happening together is P(A ∩ B) = P(A) × P(B). This captures the idea that knowing B did occur doesn’t change how likely A is, and vice versa.

For example, flip a fair coin (P(A) = 0.5) and roll a fair die (P(B) = 1/6). The probability both happen is 0.5 × 1/6 = 1/12 ≈ 0.0833.

The other expressions don’t describe the intersection probability in general: addition is related to the probability of the union (with a correction for overlap), the maximum isn’t the intersection, and subtraction isn’t a rule for the joint probability of independent events.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy