The Probability That House Sales Will Increase in the Next

question 91

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 events increase in house sales and no increase in house sales in the next 6 months are

• A)independent.
• B)mutually exclusive.
• C)collectively exhaustive.
• D)(b)and (c)

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Definitions:

Maximum Capacity

The highest level of output that a company can sustain to make a product or provide a service, under normal conditions.

Dividend Payout Ratio

A financial metric indicating the percentage of a company's earnings paid out to shareholders in the form of dividends.

Debt-Equity Ratio

Calculating a corporation's financial leverage involves dividing total liabilities by the equity of shareholders.

Net Fixed Assets

Net fixed assets refer to the total value of a company's property, plant, and equipment minus depreciation, representing the actual value of company's long-term assets being used in operations.