The Following Table Shows the Probabilities of A, B, X

question 43

Essay

The following table shows the probabilities of A, B, X, and Y. Compute the joint probability table. Then calculate Pr(BY) and Pr(XB).
$\begin{array} { | c | c | c | } \hline & \mathbf { X } & \mathbf { Y } \\\hline \mathbf { A } & \mathbf { 3 2 5 } & 455 \\\hline \mathrm { B } & 416 & 104 \\\hline\end{array}$

---

Definitions:

Variable Rate

An interest rate that can change over the period of a loan or mortgage, based on an underlying benchmark interest rate or index.

Coupon Payment

The interest payment made to bondholders, typically semiannually, as a return on investment.

Coupon Bond

A bond that makes regular interest payments to its holders, named after the detachable coupons once used for interest payments.

Real Risk Free Rate

The rate of return on an investment with no risk of financial loss, after adjusting for inflation.