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Reading 8: Probability Concepts - LOS d ~ Q1-3

Q1. Let A and B be two mutually exclusive events with P(A) = 0.40 and P(B) = 0.20. Therefore:

A)   P(B|A) = 0.20.

B)   P(A and B) = 0.08.

C)   P(A and B) = 0.

Q2. For a given corporation, which of the following is an example of a conditional probability? The probability the corporation's:

A)   dividend increases given its earnings increase.

B)   earnings increase and dividend increases.

C)   inventory improves.

Q3. For an unconditional probability:

A)     there are at least two events.

B)     the addition rule is important.

C)     there is only one random variable of concern.

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