A company says that whether it increases its dividends depends on whether its earnings increase. From this we know:
A) |
P(earnings increase | dividend increase) is not equal to P(earnings increase). | |
B) |
P(both dividend increase and earnings increase) = P(dividend increase). | |
C) |
P(dividend increase | earnings increase) is not equal to P(earnings increase). | |
If two events A and B are dependent, then the conditional probabilities of P(A | B) and P(B | A) will not equal their respective unconditional probabilities (of P(A) and P(B), respectively). Both remaining choices may or may not occur, e.g., P(A | B) = P(B) is possible but not necessary. |