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# YouTubeT2-4 What is statistical independence?

#### Nicole Seaman

##### Director of FRM Operations
Staff member
Subscriber
Variables are independent if and only if (iff) their JOINT probability is equal to the product of their unconditional (aka, marginal) probabilities; i.e., if and only if Prob(X,Y) = Prob(X)*Prob(Y). Further, if variables are independent then their covariance (and correlation) is equal to zero, but the converse is not true.

Here is David's XLS: http://trtl.bz/2kucVOv