I the Complement Rule States That the Probability of an Event

question 50

Multiple Choice

i. The complement rule states that the probability of an event not occurring is equal to one minus the probability of its occurrence. ii. If there are two independent events A and B, the probability that A and x B will occur is found by multiplying the two probabilities. Thus for two events A and B, the special rule of multiplication shown symbolically is: P(A and B) = P(A) P(B) .
iii. The general rule of multiplication is used to find the joint probability that two events will occur. Symbolically, the joint probability P(A and B) is found by: P(A and B) = P(A) P(B/A) .

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and, (ii) are correct statements but not (iii).
• C) (i) and, (iii) are correct statements but not (ii).
• D) (ii) and, (iii) are correct statements but not (i).
• E) (i), (ii) and (iii) are all false statements.

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Definitions:

Net Income

The total profit or loss of a company after all revenues, costs, and expenses have been accounted for.

Bad Debt Expense

An estimated expense recognized by businesses for accounts receivable that are considered unlikely to be collected.

Salvage Value

The projected value of an asset when it reaches the end of its operational lifespan.

Useful Life

The estimated time period an asset is expected to be used by a company before it is no longer useful or becomes obsolete.