Mutually exclusive events are those events which cannot happen together,
i.e. there is no intersection between the two events. Therefore, both
P (A|B) and P (AB) must be equal to zero
Quantitative Methods MCQ - Quantitative Methods Section 2
The two defining properties of a probability are as follows: The
probability of any event, E, is a number between 0 and 1. The sum of
the probabilities of any set of mutually exclusive and exhaustive events
equals one.
An empirical probability is “a probability estimated from data as a
relative frequency of occurrence.”.
- A The probability that KSE 100 index will outperform LSE 100 index over a 5 year period.
- B The probability of a particular outcome when only five possible outcomes exist.
- C The probability of Kay Electronics going bankrupt changes after adjusting it to the reduced confidence in electronics’ companies.
Empirical: it is based on past data. A Priori: it is based on logical
reasoning. Subjective: it is based on personal judgment.
