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Lesson 9 of 20

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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Probability of Atleast One of the Events Occuring

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Joint Probability of a Number of Independent Events

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Probability Concepts

20 lessons

Lessons

1
Probability - Basic Terminology
2
Two Defining Properties of Probability
3
Empirical, Subjective and Priori Probability
4
State the Probability of an Event as Odds
5
Unconditional and Conditional Probabilities
6
Multiplication, Addition and Total Probability Rules
7
Joint Probability of Two Events
8
Probability of Atleast One of the Events Occuring
9
Dependent Vs. Independent Events in Probability
10
Joint Probability of a Number of Independent Events
11
Unconditional Probability Using Total Probability Rule
12
Expected Value of Investments
13
Calculating Variance and Standard Deviation of Stock Returns
14
Conditional Expected Values
15
Calculating Covariance and Correlation
16
Expected Value of a Portfolio
17
Variance and Standard Deviation of a Portfolio
18
Bayes’ Theorem
19
Multiplication Rule of Counting
20
Permutation and Combination Formula

Quizzes

Probablity Concepts
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