Interview Question

FX Options Trading Interview(Student Candidate) London, England (UK)

There’s a 60% chance it will rain on Saturday AND Sunday

  is the probability that there will be rain on the weekend.
Answer

Interview Answer

2 Answers

0

Take the square root of 0.6 to give the individual probability on Sat or Sun = 0.7746. The chance of it being dry all weekend is therefore one minus this number squared = 0.051, so the chance of rain on the weekend is 95%.

Ferret on Oct 8, 2012
0

Your answer assumes that the probability of it raining on sat or sunday is identical*. Should be stated in question. Ie if it is more likely to rain on sunday than saturday than it changes probabilities....such as probability is 0.9 it rains on saturday and 0.6667 on sunday.

HandofFerret on Aug 17, 2013

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