In: Economics
Tell whether or not each of the following statements assumes
independence among events.
a. There is no such thing as a hot hand. Regardless of which
basketball player scored the last goal, it is likely to score the
next.
b. When there was one student who scored above average, it was
found that there was a higher probability that there were students
in the same class who scored above average.
c. We have many mortgage-backed securities and the probability that
one securities will default is very safe because the other
securities do not rely on the probability of default occurring.