Question

Define conditional probability.

Answer 1

CONDITIONAL PROBABILITY :
If A and B are two non-zero events, then probability of happening of A when B has already occurred is given by :

P(A| B) = P(A π B) / P(B)

=> It is interpreted as probability of happening of A when B has already occurred :

=> For two disjoint events,
P(A|B )= 0

Answer 2

$\bold{\underline{Conditional\:probabilities:-}}$

→Conditional probabilities express the probability of an event occurring given that another event has occurred.

→They answer questions like

“What is the probability of the return on the stock being above 10% given that the return is above the risk free rate?”

or

“What is the probability of rolling a 3 given that an odd number is rolled?”

$\bold\red{Thank\:You}$ ❤