Events a and B Are Mutually Exclusive

question 45

Multiple Choice

Events A and B are mutually exclusive. Which of the following statements is also true?

• A) A and B are also independent.
• B) P(A ∪ B) = P(A)P(B)
• C) P(A ∪ B) = P(A) + P(B)
• D) P(A ∩ B) = P(A) + P(B)

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Definitions:

Annual Before Taxes

The total income or earnings generated by an entity during a fiscal year before any tax deductions.

Tax Rate

The degree of governmental claim on the earnings or profit of people and companies through taxation.

Operating Cash Flow (OCF)

A measure of the cash generated by a company's normal business operations, indicating its ability to cover operational expenses and invest in its business.

Tax Shield Approach

A method used in financial analysis to determine the value of tax deductions, such as interest on debt, which reduces taxable income.