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 increase in house sales and increase in interest rates in the next 6
Months are
A) independent.
B) mutually exclusive.
C) collectively exhaustive.
D) None of the above.

Question

Quizplus · Accepted Answer

The events are not independent because the probability of both occurring is not the product of their individual probabilities. They are not mutually exclusive because both can occur simultaneously. They are not collectively exhaustive because there are other possibilities (neither event occurs).

The Probability That House Sales Will Increase in the Next