Suppose That the Probability That LIBOR (London Inter-Bank Offered Rate)will

question 85

Multiple Choice

Suppose that the probability that LIBOR (London inter-bank offered rate) will increase next trimester is 0.025.Assume also that the probability that your company will open a new branch overseas is 0.20.If the probability that at least one of the two events occur, i.e., LIBOR increases and/or your company opens a new overseas branch, is 0.21, what is the probability that both events occur?

• A)0.225
• B)0.015
• C)0.010
• D)0.007
• E)0.005

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Definitions:

Underlying Assumptions

The basic, often implicit, ideas or beliefs that support and inform a thought process or theory.

Value-Based Management

An approach in business that centers on maximizing shareholder value through strategic decision-making and operational efficiency.

Core Values

Fundamental beliefs or principles that guide an organization's or individual's behavior and decision-making.

Constantly Changing

An environment or situation that is continuously evolving or undergoing modifications.