If Two Equally Likely Events a and B Are Collectively

question 32

Multiple Choice

If two equally likely events A and B are collectively exhaustive, what is the probability that event A occurs?

• A) 0
• B) 1.00
• C) 0.50
• D) cannot be determined from the information given

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Definitions:

Straight-Line Method

A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life.

Yearly Interest Expense

The total amount of interest payment a company owes over the course of a year on its borrowings.

Total Interest Expense

The total cost incurred by an entity for borrowed funds over a specific period.