Addition law of probability


1. The analysis of historical data for Stock A and Stock B states that whenever A goes up, B goes down; and whenever A goes down, B goes up. Find out the sign of correlation coefficient between A and B?     

a. positive        

b. negative      

c. either positive or negative  

d. There isn't enough information to decide.

2. A visual display that shows mean, median, first and third quartiles, and +/- 1, 2, and 3

standard deviations from mean is called:

a. scatter diagram

b. box-and-whisker plot

c. stem-and-leaf display

d. dot scale diagram

3. If events A and B are mutually exclusive, as well as P(A)=0.3 and P(B)=0.5, then P(A or B)=:

a. 0.3

b. 0.5

c. 0.8

d. 0.65

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Basic Statistics: Addition law of probability
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