Suppose That We Use Two Different Methods to Determine the Probability

question 14

Multiple Choice

Suppose that we use two different methods to determine the probability of a certain event.Will the two methods yield the same probability?

• A)Yes, since the probability is always an objective fact.
• B)Sometimes they will yield the same probability, and sometimes they won't.
• C)They will yield the same result if they are used by the same person, but might not if they are used by two different people.
• D)If one of the methods is intuitive judgment, then they will always be the same, but otherwise they might differ.
• E)No, they can never yield the same results because their techniques are so different.

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Definitions:

Cumulative Preferred Stock

Preferred stock where dividends accumulate if not paid as scheduled, needing to be fulfilled before common stock dividends.

Common Stock

A type of security that represents ownership in a corporation, giving shareholders voting rights and a claim on profits in the form of dividends.

Dividend

A disbursement from a corporation to its stockholders, often derived from earnings.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividend priority.