SOLUTION: Detailed analysis of two technology stocks indicates over the next six months the probability that the price of stock 1 will rise is 0.25 and for stock 2 the probability is 0.63. S
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Question 1182141: Detailed analysis of two technology stocks indicates over the next six months the probability that the price of stock 1 will rise is 0.25 and for stock 2 the probability is 0.63. Suppose the stock prices react independently. What is the probability that both stock prices will rise over the next six months? Round your answer to 4 decimal places Answer by ikleyn(52781) (Show Source):
Since the events are independent, the probability of the combined event is the product of the probabilities
of separate events. P = 0.25*0.63 = 0.1575. ANSWER
