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Political Analysts Estimate the Probability That Candidate a Will Run

question 693

Multiple Choice

Political analysts estimate the probability that Candidate A will run for president in the next
Election is 45%, and the probability that Candidate B will run is 20%. If their political decisions are
Independent, then what is the probability that only Candidate A runs for president?


Definitions:

Simulation Analysis

A method used in risk management that uses statistical models to predict the outcome of a decision under conditions of uncertainty.

Degree Of Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volume, indicating financial risk.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the present value of all future cash flows minus the initial investment cost.

Simulation Analysis

is a method used in risk management to model possible outcomes of a decision by manipulating variables within mathematical or computer simulations.

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