Page 41 - FINAL CFA SLIDES DECEMBER 2018 DAY 3
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LOS 9.h: Calculate and interpret an Session Unit 2:
unconditional probability using the total 9. Probability Concepts
probability rule.
B.
E(X | Y = 1) = (0.2)(0) + (0.4)(5) + (0.4)(10) = 6 and E(X | Y = 2) = (0.1)(0) + (0.8)(5) + (0.1)(10) = 5
E(X) = (0.3)(6) + (0.7)(5) = 5.30
