ndamental principle of academic, business, and community life is honesty ss inst

Question

ndamental principle of academic, business, and community life is honesty ss instructed otherwise, ALL work to be submitted for consideration toward a student's course grade is attempted and completed on an individual basis unless otherwise stated. aking this quiz you are agreeing to the rules of the Code of Academic Integrity provided by FAU Question 1 0.5 pts Alison has all her money invested in two mutual funds, A and B. She knows that there is a 40% chance that fund A will rise in price. There is a 60% chance that fund B will rise in price given that fund A rises in price. What is the probability that both fund A and fund B will rise in price? 076 O 0.40 O 0.24 1.00 Next Quiz saved at 10:37am Submit Qu 80 F4 FS F6 F7 F8

Explanation / Answer

Let A be the event that fund A rises in price

Let B be the event that fund B rises in price

from the data

P(A) = 0.4

P(B/A) = 0.6

Probability that both fund A and fund B rise in price is P(A and B)

we know that conditional probability P(B/A) = P(A and B) / P(A)

P(A and B) = P(B/A) * P(A)

P(A and B) = 0.6*0.4 =0.24

Probability that both fund A and fund B rise in price is P(A and B) =0.24

option C is correct

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