The probability that house sales will increase in the next 6 months is estimated to be 0.25.The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74.The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89.The events of "increase in house sales" and "increase in interest rates" in the next 6 months are
A)collectively exhaustive.
B)mutually exclusive.
C)statistically independent.
D)None of the above.

Question

Quizplus · Accepted Answer

The events of "increase in house sales" and "increase in interest rates" are not mutually exclusive since they can happen together or separately. They are also not statistically independent since the probability of one event affects the probability of the other event. Therefore, the best choice is D, none of the above.

The Probability That House Sales Will Increase in the Next