# Quants....Uniconditional and Independent Probablities.

Is there anyone make me clear the difference between Independent nd Conditional probablities… Independent events are events that are not dependent on each others occurence and are mutually exclusive. On the othe other hand, conditional are events that are baased of ones occurence like P(A/B), according to my understanding of context. But text (book 2 of schweser L1) says “Independent evenrs for which the occuraence of one is not influenced on the occurence of others. The defination of Independent events can be expressed in terms conditional probabilities”. I am understanding the first part of the defination that they are influence however the 2nd part of defination is a little confusing for me that how comes CONDITIONAL PROBABILITIES “why not unconditional” probablities, which are not based of condition of another even to happen or are mutually exclusive. i hope i have nt confused others as well…

I don’t think independent events are necessarily mutually exclusive. Where did you read that? It is true that independent events are events that are not supposed to be influenced by each other or any common factor (which implies that correlations between the two will be 0). As for definitions, I think what they are saying is that if you have independent events A and B, then you can define independence as P(A | B) = P(A), which shows that A doesn’t depend on B. Or you could say P(A | B) = P(A | not B), which is probably more rigorous. So if: P(A | B) = P(A | not B) AND P(B | A) = P(B | not A) Then A and be are mutually independent.

Ohhhh! thanks for making it such a convenient…