CFA Practice Question

CFA Practice Question

Consider the following two independent events and corresponding probabilities:

Event A) The probability that the auto demand will rise more than 5% during the coming year is 60%.
Event B) The probability that the demand for cable television will rise more than 10% is 35%.

The probability that neither events will occur is:
A. 21%
B. 74%
C. 26%
Explanation: Probability of both events failing = (1 - 0.6) * (1 - 0.35) = 26%

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