What does Compound Probability mean? Read on to discover the definition & meaning of the term Compound Probability - to help you better understand the language used in insurance policies.
Compound probability refers to a mathematical calculation that determines the possibility of two separate events happening at the same time. To calculate compound probability, multiply the possibility of the first even occurring with the probability of the second event occurring.
We hope the you have a better understanding of the meaning of Compound Probability.