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 1.. 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) collectively exhaustive.
C) mutually exclusive.
D) both B and C

Question

Quizplus · Accepted Answer

- The events of increase in house sales and no increase in house sales are mutually exclusive, meaning they cannot occur at the same time.
- They are also collectively exhaustive, meaning they cover all possible outcomes (either house sales will increase or they won't). So, they are both mutually exclusive and collectively exhaustive.

The Probability That House Sales Will Increase in the Next