The multiplication theorem for independent events states P(A ∩ B) = P(A) × P(B). For dependent events, it becomes: MCQ with Answer and Explanation

The multiplication theorem for independent events states P(A ∩ B) = P(A) × P(B). For dependent events, it becomes:

A. Both B and C are correct

B. P(B|A) × P(A)

C. P(A) + P(B)

D. P(A|B) × P(B)

Answer: Option A

Solution (By JKExamLibrary)

For any events, P(A∩B) = P(A|B)P(B) = P(B|A)P(A); independence is the special case where P(A|B)=P(A), reducing to P(A)P(B).

This question belongs to: Accountancy and Statistics Statistics

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In a class of 100 students, 60 play cricket, 50 play football, and 30 play both. Probability a random student plays neither is:

A. 0.4

B. 0.1

C. 0.2

D. 0.3

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Correct Answer: Option C

Explanation:
P(C∪F) = 60+50-30 = 80. Playing neither = 100 - 80 = 20; probability = 20/100 = 0.2.

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Question #2 Report Error

A bag contains 5 white and 3 black balls. If one ball is drawn, the probability it is black is:

A. 3/5

B. 5/8

C. 1/8

D. 3/8

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Correct Answer: Option D

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The factor reversal test requires that:

A. Price index × Quantity index = Value index

B. P₀₁ × P₁₂ = P₀₂

C. P₀₁ × P₁₀ = 1

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Correct Answer: Option A

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Factor reversal test checks if the product of a price index and its corresponding quantity index equals the value index (Σp₁q₁/Σp₀q₀), ensuring consistency between price and quantity measurements.

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