The Probability That House Sales Will Increase in the Next

question 96

Multiple Choice

The probability that house sales will increase in the next 6 months is estimated to be 0.25.The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74.The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89.The probability that both house sales and interest rates will increase during the next 6 months is:

• A)0.10
• B)0.185
• C)0.705
• D)0.90

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members from current or retained earnings, usually in the form of cash.

Liability

Obligations or debts that a business owes to external parties, which need to be settled over time through the transfer of economic benefits.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares owned.