Suppose That You Believe That the Probability You Will Get

question 104

Multiple Choice

Suppose that you believe that the probability you will get a grade of B or better in Introduction to Finance is .6 and the probability that you will get a grade of B or better in Introduction to Accounting is .5. If these events are independent, what is the probability that you will receive a grade of B or better in both courses?

• A) 0.300
• B) 0.833
• C) 0.600
• D) 0.500
• E) 0.800

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Definitions:

Long-run Phillips Curve

A concept suggesting that in the long term, there is no trade-off between inflation and unemployment, implying the curve is vertical at the natural rate of unemployment.

Inflation Rate

A percentage-based uplift in the cost of goods and services within an economy over a designated timeframe.

Zero-inflation

A situation where the price level of goods and services remains constant over time, indicating an absence of inflation in the economy.

Phillips Curve

An economic concept that describes an inverse relationship between rates of unemployment and corresponding rates of inflation, suggesting that higher inflation is associated with lower unemployment and vice versa.