Compute Probabilities Using the General Multiplication Rule
-Assume That $P ( A ) = 0.7$

question 144

Multiple Choice

Compute Probabilities Using the General Multiplication Rule
-Assume that $P ( A ) = 0.7$ and $P ( B ) = 0.2$ . If $A$ and $B$ are independent, find $P ( A$ and $B )$ .

• A) \(0.14\)
• B) \(0.76\)
• C) \(0.90\)
• D) \(1.00\)

---

Definitions:

Lending Standards

The criteria used by lenders to determine the creditworthiness of potential borrowers.

Mortgage Default Rate

The percentage of borrowers who fail to make scheduled payments on their mortgage loans, leading to the risk of foreclosure.

Investment Banks

Financial institutions that assist individuals, corporations, and governments in raising capital by underwriting or acting as the client's agent in the issuance of securities.

Bundled Securities

Financial instruments that combine multiple individual assets, such as stocks or bonds, into a single package for investment purposes.