The Probability That House Sales Will Increase in the Next

question 91

Multiple Choice

The probability that house sales will increase in the next 6 months is estimated to be 0.25.The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74.The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89.The events increase in house sales and no increase in house sales in the next 6 months are

• A)independent.
• B)mutually exclusive.
• C)collectively exhaustive.
• D)(b)and (c)

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Definitions:

Product Market

The platform where end products or services are made available to individuals, companies, and the general public.

Households

Individuals or groups of people living together as a single unit, making economic decisions and consuming goods and services.

Factor Market

A marketplace for the services of a factor of production (e.g., labor, land, capital), where these services are bought and sold.

Firms

Business organizations or entities engaged in commercial, industrial, or professional activities.