DEFINITION of 'Joint Probability'
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:
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.

Sampling Error
A statistical error to which an analyst exposes a model simply ... 
Statistics
A type of mathematical analysis involving the use of quantified ... 
Probability Distribution
A statistical function that describes all the possible values ... 
NonSampling Error
A statistical error caused by human error to which a specific ... 
Conditional Probability
Probability of an event or outcome based on the occurrence of ... 
Qualitative Analysis
Securities analysis that uses subjective judgment based on nonquantifiable ...

Options & Futures
An Introduction To Value at Risk (VAR)
Volatility is not the only way to measure risk. Learn about the "new science of risk management". 
Fundamental Analysis
Find The Right Fit With Probability Distributions
Discover a few of the most popular probability distributions and how to calculate them. 
Active Trading Fundamentals
Bet Smarter With The Monte Carlo Simulation
This technique can reduce uncertainty in estimating future outcomes. 
Active Trading Fundamentals
How To Convert Value At Risk To Different Time Periods
Volatility is not the only way to measure risk. Learn about the "new science of risk management". 
Technical Indicators
Explaining Autocorrelation
Autocorrelation is the measure of an internal correlation with a given time series. 
Mutual Funds & ETFs
Top 3 Muni California Mutual Funds
Discover analyses of the top three California municipal bond mutual funds, and learn about their characteristics, historical performance and suitability. 
Investing
What is Descriptive Statistics?
Descriptive statistics is the term applied to meaningful data analysis. 
Fundamental Analysis
Create a Monte Carlo Simulation Using Excel
How to apply the Monte Carlo Simulation principles to a game of dice using Microsoft Excel. 
Mutual Funds & ETFs
Top 4 Inverse Equities ETFs
Explore analysis of some of the most popular inverse and leveragedinverse ETFs that track equity indexes, and learn about the suitability of these ETFs. 
Forex Fundamentals
How Foreign Exchange Affects Mergers and Acquisitions Deals
Learn how foreign exchange rates can impact the flows of international merger and acquisition (M&A) transactions, and understand how deals can impact exchange rates.

Is Colombia an emerging market economy?
Colombia meets the criteria of an emerging market economy. The South American country has a much lower gross domestic product, ... Read Full Answer >> 
What assumptions are made when conducting a ttest?
The common assumptions made when doing a ttest include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >> 
What are some of the more common types of regressions investors can use?
The most common types of regression an investor can use are linear regressions and multiple linear regressions. Regressions ... Read Full Answer >> 
What types of assets lower portfolio variance?
Assets that have a negative correlation with each other reduce portfolio variance. Variance is one measure of the volatility ... Read Full Answer >> 
When is it better to use systematic over simple random sampling?
Under simple random sampling, a sample of items is chosen randomly from a population, and each item has an equal probability ... Read Full Answer >> 
What are some common financial sampling methods?
There are two areas in finance where sampling is very important: hypothesis testing and auditing. The type of sampling methods ... Read Full Answer >>