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, and a 60% chance that fund B will rise in price fhat fund A rises in price. There is also a 20% chance that fund b will rise in price. What is the probablity that at least one of the funds will rise in price?
Accepted Solution
A:
Answer:0.36Step-by-step explanation:Probability that A will rise: P(A) = 0.4Probability that B rises given that A rise: P(A|B) = 0.6Probability B will rise: P(B) = 0.2Now,P(A and B) = P(A) * P(A|B) = 0.4 * 0.6 = 0.24Probability that at least one fund will rise:P(A or B) = P(A) + P(B) - P(A and B) = 0.4 + 0.2 - 0.24 = 0.36So,Probability that at least one of the funds will rise in price = 0.36