Joint Probability of Two Events

Joint probability refers to the multiplication rule of probability. This is the probability that both the events will occur.

Joint Probability
Joint Probability

Example

The probability that the price of oil will rise, P(B) = 0.5

The probability that the bus fare will increase if oil price rises, P(A|B) = 0.4

The probability that both oil prices and bus fares will rise, P(AB) = 0.4*0.5 = 0.2

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