Statistics And Probability Question 144
Question: From past experience it is known that an investor will invest in security A with a probability of 0.6, will invest in security B with a probability 0.3 and will invest in both A and B with a probability of 0.2 what is the probability that an investor will invest neither in A nor in B?
Options:
A) 0.7
B) 0.28
C) 0.3
D) 0.4
Show Answer
Answer:
Correct Answer: C
Solution:
- [c] As given $ P(A)=0.6,P(B)=0.3 $ and $ P(A\cap B)=0.2 $ $ P(A\cup B)=P(A)+P(B)-P(A\cap B) $ $ =0.6+0.3-0.2=0.9-0.2=0.7 $ So, P (neither in A nor in B) $ =1-P(A\cup B) $ $ =1-0.7=0.3 $
BETA
