Suppose a and B Are Two Mutually Exclusive Events for Which

question 205

Essay

Suppose A and B are two mutually exclusive events for which P(A)= 0.30 and P(B)= 0.40.
a.Find P(A and B).
b.Find P(A or B).
c.Are A and B independent events? Explain using probabilities.

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Definitions:

NPV

Net Present Value, a calculation used to determine the current value of a series of future cash flows.

PI

The profitability index (PI), in financial management, is a method used to evaluate the desirability of an investment or project, calculating the ratio of the present value of future cash flows to the initial investment.

Cost of Capital

A financial metric representing the minimum return that a company must earn on its existing asset base to satisfy its creditors, owners, and other providers of capital.

Average Rate

The mean value calculated by dividing the sum of all rates by the number of rates.