Use the Multiplication Rule for Independent Events

question 170

Multiple Choice

Use the Multiplication Rule for Independent Events
-A human gene carries a certain disease from the mother to the child with a probability rate of 46%. That is, there is a 46% chance that the child becomes infected with the disease. Suppose a female carrier of the gene has three children. Assume that the infections of the three children are independent of one another. Find the probability that all three of the children get the disease from their mother.

• A) 0.097
• B) 0.903
• C) 0.157
• D) 0.134

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Definitions:

Sensitivity Analysis

A form of analysis that considers the impact of changing one or more inputs or assumptions on the resulting outcome.

Likelihoods

The probabilities or chances of different outcomes occurring.

Probabilities

A statistical measure that quantifies the likelihood of one or more events happening.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and the present value of cash outflows over time.