Probability Fundamentals and Random Variables
Free GARP FRM Part I lesson in Quantitative Analysis. 18 min read, ~2,681 words.
Event space is the full list of mutually exclusive outcomes; events are subsets. Probabilities sum to 1 across the event space. Independent means; mutually exclusive means. They are not the same, mutually exclusive events with positive probabilities CANNOT be independent. Conditional probability:. Bayes' rule flips the conditioning:. Expectation is the...
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