When Combining Probabilities, to Find the Probability of One Event

question 63

Multiple Choice

When combining probabilities, to find the probability of one event AND another event, the separate probabilities should be

• A) multiplied
• B) divided
• C) subtracted
• D) added

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Definitions:

Sales Price

Sales price refers to the final amount of money a buyer pays to purchase a product or service.

Credit Terms

The agreement between a buyer and a seller on the amount of time the buyer has to pay for an item, often including interest rates and penalties for late payment.

Optimal Order Quantity

Optimal order quantity is the number of units that minimizes the total holding and ordering costs for a company's inventory.

Total Cost

The complete cost of producing or acquiring goods or services, including fixed and variable costs, but excluding externalities.