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Market Probability Calculations

This document calculates the probability of two events occurring given the probability of each individual event. It shows that with a 90% probability of the first event and 50% probability of the second, the overall probability is 0.9. It then shows that if the probability of the first event decreases to 80%, the overall probability also decreases to 0.8.

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JoshuaDeJesus
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42 views1 page

Market Probability Calculations

This document calculates the probability of two events occurring given the probability of each individual event. It shows that with a 90% probability of the first event and 50% probability of the second, the overall probability is 0.9. It then shows that if the probability of the first event decreases to 80%, the overall probability also decreases to 0.8.

Uploaded by

JoshuaDeJesus
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

P (A|0.9) * P (B|0.

5)

= revised favorable market = 0.9

P(0.5)

P (A|0.8) * P(B|0.5)
P(0.5)

= revised favorable market = 0.8

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