THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 49

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider a sample space defined by events A₁,A₂,B₁,B₂.Let P(A₁)= 0.40 ,P(B₁ ∣ A₁)= 0.60
and P(B₁ ∣ A₂)= 0.70
-What is P(B₂ ∣ A₂)?

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Definitions:

Value Recovers

The process by which the market value of an asset increases after a period of decline.

Double Declining Balance

A method of accelerated depreciation which doubles the straight-line depreciation rate, resulting in higher depreciation expenses in the early years of an asset's life.

Depreciation Rate

The rate at which an asset's value is reduced over time for accounting and tax purposes.

Asset Retirement Obligation

A legal obligation associated with the retirement of a tangible long-lived asset, where the entity is required to remove or dispose of the asset.