The Conditional Probability of a Given B

question 136

Multiple Choice

The conditional probability of A given B:

• A)will always be less than the simple probability of A.
• B)will always be greater than the simple probability of A.
• C)will always be equal to or less than the simple probability of A.
• D)will always be 0 if A and B are mutually exclusive.
• E)will always be equal to the simple probability of B.

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Definitions:

Present Value Methods

Techniques used to estimate the current value of future cash flows, discounting them at a specified rate.

Current Dollars

A term referring to the value of a monetary unit, such as a dollar, in terms of its purchasing power at the current time, not adjusted for inflation.

Time Value

The idea that money currently in hand is valued higher than an identical sum to be received in the future because of its ability to generate earnings.

Present Value

The present value of a sum of money to be received in the future, or a series of future cash flows, calculated using an agreed-upon rate of return.