Suppose That A₁, A₂, and B Are Events Where A₁

question 88

Multiple Choice

Suppose that A₁, A₂, and B are events where A₁ and A₂ are mutually exclusive events and P(A₁) = .7, P(A₂) = .3, P(B│A₁) = .2, P(B│A₂) = .4. Find P(A₂│B) .

• A) 0.12
• B) 0.26
• C) 0.21
• D) 0.14
• E) 0.46

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Definitions:

Perpetuity

A type of annuity that pays a consistent amount indefinitely, with no end date.

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, typically expressed in years.

Price Volatility

The rate at which the price of a security increases or decreases for a given set of returns, often measured by the standard deviation of historical daily price changes.