A Friend Claims That It Will Rain Today with Probability

question 27

Multiple Choice

A friend claims that it will rain today with probability 30% and tomorrow with probability four times as great as today. Which of the following is CORRECT?

• A)The claim can be true because it is more likely to rain tomorrow if we have rain today.
• B)The claim cannot be true because raining tomorrow is not guaranteed.
• C)The claim can be true because it is possible to have rain tomorrow.
• D)The claim cannot be true because any probability is between 0 and 1.

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Definitions:

Contractual Loan Restrictions

Stipulations within a loan agreement that limit certain actions of the borrower to protect the interests of the lender.

Preferred Dividends

Preferred dividends are payments made to preferred shareholders before any dividends are paid to common shareholders, typically at a fixed rate.

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding the cost of goods sold.

Cost of Goods Sold

An expense reported on the income statement that represents the total cost of products or services that have been sold.