Test: Common Core: High School - Statistics and Probability

1.

Bond A has a 10% chance of default. Bond B also has a 10% chance of default. The probability that Bond A and Bond B default is 6%.

What is the probability that Bond A defaults given that Bond B defaults? Use this result to determine if the defaults of Bond A and Bond B are independent.

60%, NOT independent

10%, NOT independent

60%, independent

1%, independent

10%, independent

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