Conditional probability P(A|B) is defined only when: MCQ with Answer and Explanation

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Conditional probability P(A|B) is defined only when:

A. P(B) > 0

B. A and B are independent

C. P(A) > 0

D. A and B are mutually exclusive

Answer: Option A

Solution (By JKExamLibrary)

The definition P(A|B) = P(A∩B)/P(B) requires P(B) > 0.

This question belongs to: Accountancy and Statistics Statistics

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Question #1 Report Error

Laspeyres index formula is:

A. Σp₁q₁ / Σp₀q₁ × 100

B. Σp₁q₀ / Σp₀q₀ × 100

C. √(L×P) × 100

D. Σp₁q₁ / Σp₀q₀ × 100

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Correct Answer: Option B

Explanation:
Laspeyres uses base quantities as weights.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

If the price index rises from 100 to 120, the purchasing power of money:

A. Remains unchanged

B. Decreases by 16.67%

C. Increases by 20%

D. Decreases by 20%

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Correct Answer: Option B

Explanation:
Purchasing power = 1/price index. Old: 1/100=0.01, new: 1/120≈0.00833, decline = (0.01-0.00833)/0.01 = 0.1667 or 16.67%.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

If two distributions have the same mean but different standard deviations, which statement is TRUE?

A. Their medians must be equal

B. The one with larger SD has more spread around the mean

C. They have identical shapes

D. Their modes must be equal

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Correct Answer: Option B

Explanation:
Standard deviation measures dispersion; a larger SD indicates greater variability of observations around the mean, regardless of the mean's value or distribution shape.

This question belongs to: Accountancy and Statistics Statistics

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