The Addition Rule Says That P(A or B)= P(A)+ P(B)

question 2

Multiple Choice

The Addition Rule says that P(A or B) = P(A) + P(B) .What must be true about events A and B for this rule to apply?

• A)The events must be disjoint.
• B)The events must be independent.
• C)The events must be mutually exclusive.
• D)Two of the above

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Definitions:

Strategic Options

Options for future, related business products or strategies.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes (scenarios), often for the purpose of strategic planning.

Sales Level

The total volume or amount of sales achieved by a company within a specified period.

Payback Period

The length of time required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.