Dependent Vs. Independent Events in Probability

Two events are said to be independent if the occurrence of one event is in no way affected by the occurrence of the other event. Suppose we roll a die and receive a 6. The second time we roll the die, its outcome will not be affected by the fact that we received a 6 in the first roll. The outcome of each roll is independent of each other.

To be independent, one of the following conditions must be true:

P(A | B) = P(A) or P(B | A) = P(B)

If the two events are not independent, then they are said to be dependent, that is, the occurrence of one event influences the occurrence of another event.

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Data Science in Finance: 9-Book Bundle

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Master R and Python for financial data science with our comprehensive bundle of 9 ebooks.

What's Included:

  • Getting Started with R
  • R Programming for Data Science
  • Data Visualization with R
  • Financial Time Series Analysis with R
  • Quantitative Trading Strategies with R
  • Derivatives with R
  • Credit Risk Modelling With R
  • Python for Data Science
  • Machine Learning in Finance using Python

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