Suppose That A₁, A₂, and B Are Events Where A₁

question 9

Multiple Choice

Suppose that A₁, A₂, and B are events where A₁ and A₂ are mutually exclusive events and P(A₁) = .7, P(A₂) = .3, P(B│A₁) = .2, P(B│A₂) = .4. Find P(B) .

• A) 0.60
• B) 0.26
• C) 0.21
• D) 0.14
• E) 0.28

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Definitions:

Dividend Payout Ratio

A financial metric that shows what percentage of a company's earnings are distributed to shareholders as dividends.

Additional Debt

Borrowing more funds in addition to existing debt, which can increase a company's leverage and financial risk.

Operating Capacity

The maximum output that a company can produce under normal conditions within a given period using its existing resources.

Dividend Payout Ratio

A financial metric that shows the percentage of a company's earnings paid out to shareholders as dividends.