Which Rule States That When Two Outcomes Are Independent,the Probability

question 2

Multiple Choice

Which rule states that when two outcomes are independent,the probability that these outcomes occur together is the product of their individual probabilities?

• A) additive rule
• B) multiplicative rule
• C) additive rule and multiplicative rule
• D) none of these

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Definitions:

Salvage Value

The evaluated resale price of an asset after its lifespan of usefulness.

Straight-Line Method

A depreciation technique where an asset loses an equal amount of value each year over its useful life.

Payback Period

The duration needed to recoup the expenses of an investment.

Simple Rate of Return

A financial metric used to evaluate the efficiency of an investment or to compare the efficiencies of several investments, calculating net annual profit divided by initial investment cost.