Three Events Occur with Probabilities P(E1) = 0

question 63

Multiple Choice

Three events occur with probabilities P(E1) = 0.35, P(E2) = 0.15, P(E3) = 0.40. If the event B occurs, the probability becomes P(E1|B) = 0.25, P(B) = 0.30. Compute P(E1 or B)

• A) 0.575
• B) 0.075
• C) 0.021
• D) 0.475

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Definitions:

Increases Liabilities

Refers to events or transactions that result in a rise in the amounts owed by a company, such as taking on new loans or issuing bonds.

Decreases Equity

Activities or transactions that reduce the owner's equity in a company, often through expenses, losses, or distributions to owners.

Earned Revenue

Earned revenue is income a company generates from its business activities, such as sales of goods or services, indicating work completed and value provided to customers.

Rights Of Creditors

Legal entitlements of creditors to receive payment from a debtor or claim on the assets of a debtor in case of default.