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 no increase in house sales in the next 6 months are
A) statistically independent.
B) mutually exclusive.
C) collectively exhaustive.
D) B and C.

Question

Quizplus · Accepted Answer

The events of an increase in house sales and no increase in house sales are mutually exclusive, meaning it is not possible for both events to happen at the same time. Additionally, these two events are collectively exhaustive, meaning they encompass all possible outcomes.

The Probability That House Sales Will Increase in the Next