Explain Why the Given Statement Is Incorrect

question 62

Essay

Explain why the given statement is incorrect.
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Mark Owens, an optician, estimates that the probability that a customer coming into his store will purchase one or more pairs of glasses but not contact lenses is .35, and the probability that he will purchase one or more pairs of contact lenses but not glasses is .25. Hence, Owens concludes that the probability that a customer coming into his store will purchase neither a pair of glasses nor a pair of contact lenses is .40.

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Definitions:

Foreseeable User

A person who is reasonably expected to use a product and whom the manufacturer or provider should consider when designing or supplying the product.

Securities Exchange Act of 1934

A U.S. federal law governing the trading of securities in the secondary market, overseeing transactions, requiring disclosure, and aiming to prevent fraud.

Scienter

A legal term referring to the knowledge of wrongdoing, particularly the party's intent to deceive or act fraudulently in securities law.

GAAS

Generally Accepted Auditing Standards; guidelines for auditors in the conduct of financial audits.