Suppose $$P ( A ) = 0.1 , P ( B ) = 0.5 , \text { and } P ( A \cap B ) = 0$$

question 36

Essay

Suppose $$P ( A ) = 0.1 , P ( B ) = 0.5 , \text { and } P ( A \cap B ) = 0$$
a. Find $P ( A \cup B )$
b. Are A and B independent events? Explain.
c. Are A and B mutually exclusive events? Explain.

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Definitions:

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall market capitalization remains the same.

Pre-split Price

Refers to the stock price of a company before it undergoes a stock split, a process that increases the number of shares while reducing the price per share without affecting the company's overall market capitalization.

Post-split Price

The value of an individual share after a company has completed a stock split.