The Probability of an Economic Decline in the Year 2008 $\cup$

question 73

Essay

The probability of an economic decline in the year 2008 is 0.23. There is a probability of 0.64 that we will elect a republican president in the year 2008. If we elect a republican president, there is a 0.35 probability of an economic decline. Let "D" represent the event of an economic decline, and "R" represent the event of election of a Republican president.
a.Are "R" and "D" independent events?
b.What is the probability of a Republican president and economic decline in the year 2008?
c.If we experience an economic decline in the year 2008, what is the probability that there will a Republican president?
d.What is the probability of economic decline or a Republican president in the year 2008? Hint: You want to find P(D $\cup$ R).

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Definitions:

FOB Factory

FOB Factory, or Free on Board Factory, is a pricing term that indicates the buyer takes responsibility for goods once they leave the seller's premises.

Neiman Marcus

is a luxury department store chain in the United States known for its high-end clothing, accessories, and home furnishings.

Milan

A city in Italy, known for its significant influence in fashion, design, and finance sectors.

Freight-Absorption Pricing

A pricing strategy where the seller absorbs all or part of the freight charges to make their product more attractive to distant buyers.