Eryn has just bought two stocks: A and B.She estimates that stock A has an 80% chance of increasing in value.She estimates that stock B has a 70% chance of increasing in value.She also estimates that if stock A increases in value, the chance that stock B will increase jumps to 75%.What's the probability that both stocks increase in value?
A).60
B).56
C).665
D).74
E).65

Question

Quizplus · Accepted Answer

The probability that stock A increases in value is 0.8. The probability that stock B increases in value, given that stock A increases in value, is 0.75. The probability that both stocks increase in value is therefore 0.8 * 0.75 = 0.6.

Eryn Has Just Bought Two Stocks: a and B