The Addition Rule of Probability States ______

question 69

Multiple Choice

The addition rule of probability states ______.

• A) there are a number of ways an outcome can occur
• B) the combined probability of mutually exclusive outcomes is the sum of their individual probabilities
• C) the sum of the probabilities of all possible outcomes of an event equals 1.00
• D) the outcome equals the number of ways the outcome can occur divided by the total possible outcomes

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Definitions:

Subrogation

The legal process by which one party stands in for another to claim restitution or indemnity from a third party for a loss or damage.

Improper Payment

Payments made by organizations that should not have been made or that were made in an incorrect amount.

Preauthorized Electronic Transfer

An automatic transfer of funds from one account to another, agreed upon in advance by the account holder.

Financial Institution

Organizations that provide financial services, including banks, credit unions, and insurance companies.