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

1For an unconditional probability:

A)   there are at least two events.

B)   the joint probability rule is important.

C)   the addition rule is important.

D)   there is only one random variable of concern.

2For a given corporation, which of the following is an example of a conditional probability? The probability the corporation's:

A)   earnings increase and dividend increases.

B)   financial condition improves.

C)   inventory improves.

D)   dividend increases given its earnings increase.

 

3Let 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.

C)   P(A or B) = 0.52.

D)   P(A and B) = 0.08.

 cc

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答案和详解如下:

1For an unconditional probability:

A)   there are at least two events.

B)   the joint probability rule is important.

C)   the addition rule is important.

D)   there is only one random variable of concern.

The correct answer was D)    

An unconditional probability gives the probability of an event regardless of what other events occur.

2For a given corporation, which of the following is an example of a conditional probability? The probability the corporation's:

A)   earnings increase and dividend increases.

B)   financial condition improves.

C)   inventory improves.

D)   dividend increases given its earnings increase.

The correct answer was D)

A conditional probability involves two events. One of the events is a given, and the probability of the other event depends upon that given.

3Let 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.

C)   P(A or B) = 0.52.

D)   P(A and B) = 0.08.

The correct answer was B)

If the two evens are mutually exclusive, the probability of both ocurring is zero.

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