Question: Let A be a random variable that represents the daily outcome for the US equities market, and B is a random variable that represents the

Let A be a random variable that represents the daily outcome for the US equities market, and B is a random variable that represents the daily outcome for the European equities markets. Both random variables have three possible outcomes: up, down, or unchanged. Suppose the joint probability that both markets are up in a given day is 0.12 and the probability that the European market is up equals 0.4. What is the probability that the US market is up given that the European market was up earlier in the same day?

A. 0.30 B. 0.048 C. 0.03 D. 0.036

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QUESTION 6 Let's use the same information about the US and European equities markets from Question 5. Also, suppose the probability that the US market is up on a given day is 0.35. What is the probability that the US market or the European market is up on a given day?

A. 0.12 B. 0.30 C. 0.40 D. 0.63

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