Bayes' Theorem Is Used to Compute

question 47

Multiple Choice

Bayes' theorem is used to compute

• A) the prior probabilities.
• B) the union of events.
• C) intersection of events.
• D) the posterior probabilities.

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Definitions:

Market Price

The contemporary selling or buying price for an asset or service in the marketplace.

Earnings Per Share

A financial ratio calculated as a company's net income divided by the number of outstanding shares of its common stock.

Par Value

Par value is the nominal or face value of a bond, stock, or coupon as indicated on a certificate or instrument, often used in the legal capital of a corporation.

Net Income

The amount of earnings left over after all expenses, including taxes and costs of goods sold, have been deducted from total revenue.