Joint Probability

What is a 'Joint Probability'

A joint probability is a statistical measure where the likelihood of two events occurring together and at the same point in time are calculated. Joint probability is the probability of event Y occurring at the same time event X occurs.

Notation for joint probability takes the form:

Joint Probability

BREAKING DOWN 'Joint Probability'

Joint probability is a measure of two events happening at the same time, and can only be applied to situations where more than one observation can be occurred at the same time.

For example, a joint probability can not be calculated when tossing a coin on the same flip. However, the joint probability can be calculated on the probability of rolling a 2 and a 5 using two different dice.

RELATED TERMS
  1. Joint

    A legal term describing a transaction or agreement where two ...
  2. Joint Endorsement

    The type of endorsement that is required on any type of joint ...
  3. Addition Rule For Probabilities

    A statistical property that states the probability of one and/or ...
  4. Joint Credit

    Credit issued to two or more people based on their combined incomes, ...
  5. With Benefit Of Survivorship

    A form of joint tenancy ownership where property passes to the ...
  6. Joint Float

    Two or more countries agreeing to keep their currencies at a ...
Related Articles
  1. Investing

    What does Joint Venture Mean?

    In a typical joint venture, two or more businesses agree to contribute capital and resources for a common project. Most often, that project produces something that earns revenue.
  2. Trading

    Financial Forecasting: The Bayesian Method

    This method can help refine probability estimates using an intuitive process.
  3. Investing

    Estimating with Subjective Probability

    Subjective probability is someone’s estimation that an event will occur.
  4. Managing Wealth

    Joint Credit Cards: The Pros and Cons

    A joint credit card may sound like an easy way to split the bills, but make sure you know what you’re getting into first.
  5. Personal Finance

    Should Married Taxpayers File Together?

    Married couples that file a joint tax return can enjoy several credits and benefits that aren’t available when filing separately.
  6. Investing

    Scenario Analysis Provides Glimpse Of Portfolio Potential

    This statistical method estimates how far a stock might fall in a worst-case scenario.
  7. Personal Finance

    3 Ways to Manage Money as a Couple

    Start your marriage off right: Decide how you will set up your accounts, create a household budget and don’t forget savings and retirement.
  8. Investing

    What are Mutually Exclusive Events?

    In statistics, mutually exclusive situations involve the occurrence of one event that does not influence or cause another event.
  9. Retirement

    Top Reasons to File Separately When Married

    Usually couples file their taxes jointly, not separately. Except for these possible exceptions...
  10. Markets

    Virtual Joint Venture: A New Model For US Businesses to Enter China?

    Learn about virtual joint ventures and how these agreements may promote the entrance of American companies into China's vast markets.
RELATED FAQS
  1. What are the primary disadvantages of forming a joint venture?

    Learn the disadvantages to forming and maintaining a joint venture partnership, including factors business owners should ... Read Answer >>
  2. What are the primary advantages of forming a joint venture?

    Learn how the advantages of entering into a joint venture make the business strategy an alternative to mergers and acquisitions ... Read Answer >>
  3. With death of my spouse in December 2015, can I still file jointly for 2015 like ...

    Spouse and I have always completed a joint tax return, though we haven't needed to file for years with our low income. My ... Read Answer >>
  4. Do joint ventures need an exit strategy?

    Understand why an exit strategy is important for a business partnership such as a joint venture, and learn the options partners ... Read Answer >>
  5. How are joint ventures regulated in the United States?

    Learn how joint ventures are governed in the United States, and discover why tort law is so important for upholding the contracts ... Read Answer >>
  6. Will jointly filing taxes have the effect of joining a couple's credit?

    The only thing that "joins" the credit of a married couple is the ownership of joint accounts. In other words, if there is ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center