16. If events A and B are mutually exclusive, then which of the following is true?

- Option : C
- Explanation : Mutually exclusive events are those events which cannot happen together, i.e. there is no intersection between the two events. Therefore, both P (A|B) and P (AB) must be equal to zero

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17. The probability of any event can be best defined as a number between:

- Option : C
- Explanation : The two defining properties of a probability are as follows: The probability of any event, E, is a number between 0 and 1. The sum of the probabilities of any set of mutually exclusive and exhaustive events equals one.

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- Option : A
- Explanation : A probability obtained based on logical analysis is a priori probability

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20. Which of the following is most likely a subjective probability?

- A
The probability that KSE 100 index will outperform LSE 100 index over a 5 year period.

- B
The probability of a particular outcome when only five possible outcomes exist.

- C
The probability of Kay Electronics going bankrupt changes after adjusting it to the reduced confidence in electronics’ companies.

- Option : C
- Explanation : Empirical: it is based on past data.

A Priori: it is based on logical reasoning.

Subjective: it is based on personal judgment.

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