Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Two events are independent if the probability of the first event happening has no impact on the probability of the second event happening. For example, the probability of rolling a 6 on a die will not ...

Two events are independent if the probability of the first event happening has no impact on the probability of the second event happening. For example, the probability of rolling a 6 on a die will not ...

For any event that has multiple outcomes with different probabilities, it can be helpful and illustrative to construct a chart or diagram of the possible outcomes. Tree diagrams are a useful example ...

A tree diagram is helpful for working with event intersections and conditional probabilities. A tree consists of nodes and branches representing different stages in an experiment. Tree 1 shows an ...

Welcome to the user manual for your newly set up Probability Tree Diagram. This comprehensive guide is intended to help you get started with your product and provide you with a thorough understanding ...

"Figure 2. The probability of any outcome (leaf) in a probability tree diagram is given by the product of probabilities from the start of the tree to the outcome. For example, the probability that X ...