CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

A survey of top executives revealed that 35% regularly read Time magazine, 20% read Newsweek, and 40% read U.S. News & World Report. Ten percent read both Time and U.S. News & World Report. What is the probability that a particular top executive reads either Time or U.S. News & World Report regularly?
A. 0.85
B. 0.06
C. 0.65
Explanation: 35% + 40% - 10% = 65%

User Contributed Comments 8

User Comment
rgat where did 10% come from?
capitalpirate 10% reading both!
Criticull you can't double count the intersection...
Daddykay makes sense
clipp formula: P(A or B) = P(A)+P(B) - P(AB)
rjasins1 the probability of AB occuring together is 14% (.35 *.40). What am I missing? Thanks!
myron @rjasins1: if the two events are independent, yes P(A and B) = P(A) * P(B). The question does not specify they are independent events.
gyee2012 @clipp takes on the assumption that the magazines are independent events to get the answe
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