The probabilities that stock A will rise in price is 052 and

The probabilities that stock A will rise in price is 0.52 and that stock B will rise in price is 0.48. Further, if stock B rises in price, the probability that stock A will also rise in price is 0.68.

What is the probability that at least one of the stocks will rise in price? (Round your answer to 2 decimal places.)

Solution

the probability that at least one of the stocks will rise in price

= P(AUB)

=P(A)+P(B)-P(AB)

= 0.52+0.48-0.68(0.48)

= 1.00-0.3264

=0.6736

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No P(AB) not equals 0

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P(A/B) = 0.68

But P(A) is not 0.68

Hence not independent.