Which of the Following Statements Correctly Describes a Pair of Mutually

question 5

Multiple Choice

Which of the following statements correctly describes a pair of mutually exclusive events?

• A) Pr[A and B] = 0
• B) Pr[A or B] = 0
• C) Pr[A and B] = 1
• D) Pr[A or B] = 1

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Definitions:

Stock Dividend

A stock dividend is a dividend payment made to shareholders in the form of additional shares rather than a cash payout, affecting the shareholder's portion of company ownership but not the total value of ownership.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the company does not change.

Dividend Decisions

The process by which a company's board of directors decides the amount and timing of payouts to shareholders from earnings.