Suppose That P(A) = 0

question 89

Short Answer

Suppose that P(A) = 0.4, P(B) = 0.5, and that events A and B are mutually exclusive.
a. Find
.
______________
b. Find
.
______________

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Definitions:

Credit Policy

A credit policy is the set of guidelines that a company follows to determine the creditworthiness of customers and the terms of credit to offer.

Cash Balances

The amount of cash or cash equivalents that a company or an individual holds.

Compensating Balances

Minimum balances that a business must maintain in its bank account as part of a borrowing arrangement with the bank.

Precautionary Balances

Cash balances held in reserve for random, unforeseen fluctuations in cash inflows and outflows.