When a Customer Enters a Store There Are Three Outcomes

question 21

Multiple Choice

When a customer enters a store there are three outcomes that can occur: buy nothing, buy a small amount, or buy a large amount. It is the case that if a customer buys a large amount, he or she cannot also buy a small amount or buy nothing. We say that these events are

• A) disjoint.
• B) independent.
• C) all inclusive.
• D) related.
• E) unrelated.

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Definitions:

Compounded Semi-annually

An interest calculation method where interest is added to the principal sum twice a year, affecting the total interest earned.

Monthly Payment

The fixed amount of money paid every month over the course of a loan term or to settle a recurring charge.

Personal Loan

An unsecured loan provided by financial institutions based on the borrower's credit history and income.

Compounded Annually

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods, done once a year.