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Probability- GPrep 4

Expert replies
by prachi18oct » Fri Oct 10, 2014 4:30 am
Don't remember exactly the words but the question was like this :-

Probability that prices of Stock A will keep on increasing is 0.54 and probability that prices of STock B will keep on increasing is 0.68. What is the probability that neither of these happen?

My solution:-

P(A not happens) = 1-0.54 = 0.46
P(B not happens) = 1-0.68 = 0.32
P(A and B not happen) = 0.46 * .32 = 0.14

OA 0.32

Please explain
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Source: — Problem Solving |

by Brent@GMATPrepNow » Fri Oct 10, 2014 9:31 am
prachi18oct wrote:Don't remember exactly the words but the question was like this :-

Probability that prices of Stock A will keep on increasing is 0.54 and probability that prices of STock B will keep on increasing is 0.68. What is the probability that neither of these happen?

My solution:-

P(A not happens) = 1-0.54 = 0.46
P(B not happens) = 1-0.68 = 0.32
P(A and B not happen) = 0.46 * .32 = 0.14

OA 0.32

Please explain
Please take the time to properly transcribe the question (you are missing some key words)) AND provide the 5 answer choices.

Once you've done that, you will likely get a response.

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
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by prachi18oct » Fri Oct 10, 2014 9:42 am
This was a GMATPrep 4 question which I don't have with me currently. If not the solution of this problem, Can you please explain if this is the correct way of solving it.
P(A) = x
P(B) = y
Probability that neither A or B occurs is (1-x)(1-y)
?
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by Brent@GMATPrepNow » Fri Oct 10, 2014 9:46 am
Here's the original question:
If the probability is 0.54 that stock A will increase in value during the next month and the probability is 0.68 that stock B will increase in value during the next month, what is the greatest possible value for the probability that neither of these 2 events will occur?
A) 0.22
B) 0.32
C) 0.37
D) 0.46
E) 0.63
Here's Mitch's great reply: https://www.beatthegmat.com/gmat-prep-ex ... 72553.html


Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
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by prachi18oct » Fri Oct 10, 2014 10:20 am
Hi Brent,

How can we assume that the increases in stock prices of A and B are dependent events like buying lottery and winning lottery events?
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by [email protected] » Fri Oct 10, 2014 10:37 am
Hi prachi18oct,

In this prompt, we have to assume that the two events are dependent because the question asks for the GREATEST POSSIBLE probability that neither of the 2 events would occur. When the question varies from the "normal" version, you have to be ready to adjust your thinking (and often, how you do the math).

GMAT assassins aren't born, they're made,
Rich
Contact Rich at [email protected]
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