Quant Interview Prep8 sections · 255 units
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Conditional Probability

When events depend on each other

Conditional probability measures the chance of AA given that BB occurred: P(AB)=P(AB)/P(B)P(A|B) = P(A \cap B) / P(B). This appears constantly in quant interviews. Example: you flip a biased coin.

Given that you saw 55 heads in a row, what's the probability the coin is unfair? You'll use conditional probability to update beliefs as new information arrives.