- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 8. Probability Concepts
- Subject 3. Addition Rule for Probabilities: the Probability that at Least One of Two Events Will Occur
CFA Practice Question
If two events, A and B, are mutually exclusive, what does the special rule of addition state?
A. P(A and/or B) = P(A) +P(B)
B. P(A and B) = P(A) + P(B)
C. P(A or B) = P(A) + P(B)
Explanation: The key information is that these events are mutually exclusive. So P(A or B) = P(A) + P(B). The probabilities stand alone.
User Contributed Comments 1
| User | Comment |
|---|---|
| praj24 | And = multiplication Or = Addition |