E. Chapter 3 HW- Probability Topics All Category: Homework (c) Are \( C \) and \( D \) independent events? Why or why not? A \( C \) and \( D \) are independent because \( \mathrm{P}(C \) AND \( D) \neq 0 \). C \( C \) and \( D \) are not independent because \( \mathrm{P}(C \mid D) \neq \mathrm{P}(C) \) are independent because \( \mathrm{P}(C \mid D) \neq \mathrm{P}(C)+\mathrm{P}(D) \). \( \mathrm{D} ~ \) B and \( D \) are not independent because \( \mathrm{P}(C) \neq \mathrm{P}(D) \). (d) Find \( \mathrm{P}(C \) OR \( D) \). \( \mathrm{P}(C \) OR \( D)=C \) (e) Find \( \mathrm{P}(D \mid C) \). \( \mathrm{P}(D \mid C)=1 \)
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When assessing whether events \( C \) and \( D \) are independent, remember that two events are considered independent if the occurrence of one does not affect the probability of the other. Specifically, if \( P(C | D) = P(C) \), they are independent. If this holds true, it means that knowing \( D \) occurred gives us no new information about \( C \). In practice, understanding independence is crucial in various fields like statistics, finance, and even game theory. For instance, in finance, if two stocks are statistically independent, the performance of one does not influence the other. This concept helps in strategic investment decisions, as diversifying across independent assets can reduce risk more effectively compared to those that are correlated.