If X and Y are independent events, which of the following is most accurate?
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Note that events being independent means that they have no influence on each other. It does not necessarily mean that they are mutually exclusive. Accordingly, P(X or Y) = P(X) + P(Y) ? P(X and Y). By the definition of independent events, P(X|Y) = P(X).
A company says that whether it increases its dividends depends on whether its earnings increase. From this we know:
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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.
If the outcome of event A is not affected by event B, then events A and B are said to be:
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If the outcome of one event does not influence the outcome of another, then the events are independent.
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