Select the Correct Statement Concerning the Law of Total Probability

question 8

Multiple Choice

Select the correct statement concerning the Law of Total Probability and conditional probability.

• A) The Law of Total Probability defines unconditional probability of an event P(E) using known conditional probabilities P(E|Bk) given that mutually exclusive events Bk have occurred, each Bk with a known probability itself. Conditional probability P(E|F) defines the probability of an event E given that an event F has occurred.
• B) The Law of Total Probability defines unconditional probability of an event P(E) using known conditional probabilities P(E|Bk) given that mutually exclusive events Bk have occurred, each Bk with a known probability itself. Conditional probability P(E|F) defines the probability of an event F given that an event E has occurred.

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Definitions:

Expected Rate

The Expected Rate often refers to the anticipated return or yield on an investment, savings, or any financial product over a specified period.

Market Rate

The prevailing price in the market for goods or services, influenced by supply and demand dynamics.

Interest

The charge for borrowing money, typically expressed as an annual percentage rate, or the return earned on investments.

Sales Techniques

Strategies and methods used by sales professionals to promote and sell products or services effectively.