- CFA Exams
- CFA Exam: Level I 2021
- Study Session 2. Quantitative Methods (1)
- Reading 8. Probability Concepts
- Subject 1. Introduction

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**CFA Practice Question**

An experiment consists of removing one card from a deck of 52 cards. Let S = (H,D,C,P). Let event A be the event in which the card removed is a heart (H) or a diamond (D), A= (H,D). Let event B be the event in which the card removed is a spade (P) or a club (C), B = (C,P). Which of the following statements is incorrect?

B. A and B are exhaustive events.

C. (D,C) is not a subset of S.

A. A and B are disjoint events.

B. A and B are exhaustive events.

C. (D,C) is not a subset of S.

Correct Answer: C

Although (D,C) is not defined as an event, it is a subset of S.

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**User Contributed Comments**
7

User |
Comment |
---|---|

theBooty |
what is a disjoint event? |

mtcfa |
Why is B not correct? |

JP09 |
B is correct! Lesson: Read Carefully. "Which of the following statements is INCORRECT?" If two events have no outcomes in common they are said to be disjoint events. |

mtcfa |
Disjoint events have no outcomes in common. In this case that is true. |

Ioannis |
disjoint=mutually exclusive=>P(A*B)=0 |

choas69 |
why tease us with different names ? |

ashish100 |
to help you pass the exam mr 69 |