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Multiplication Rules and Independence
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GMAT
DI.097 Multiplication Rules and Independence
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For events A and B, P(A) = 0.20, P(B) = 0.50, and P(A or B) = 0.60. Are A and B independent?
A
No. P(A or B) must equal 0.70 for independence.
B
Yes. The union value implies P(A and B) = 0.10, which equals 0.20 x 0.50.
C
No. Independent events cannot both happen.
D
Yes. All events with probabilities below 0.50 are independent.
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