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 ...

To calculate the probability of an event, the total number of possible outcomes is often required. For simple situations, making a list or completing a sample space diagram is enough but in more ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

Probability underpins AI, cryptography and statistics. However, as the philosopher Bertrand Russell said, “Probability is the ...

Julie Young is an experienced financial writer and editor. She specializes in financial analysis in capital planning and investment management. Eric's career includes extensive work in both public and ...

Two events are independent if the probability of the first event happening has no impact on the probability of the second event happening. If the probability of one event happening affects the ...

Financial distress prediction plays an important role in the decision-making process of stock and bond investors, commercial banks and commercial credit adjusters. The effectiveness of financial ...