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Question

Statistics, Econometrics & Mathematical Economics Question on Probability

Assume the following probabilities for two events, A and B: P(A) = 0.50,P(B) = 0.50, and P(A ∪ B) = 0.85. Then we can conclude that

A

A and B are mutually independent

B

A and B are equally likely

C

A and B are not mutually independent

D

A and B are mutually exclusive

Answer

A and B are mutually independent

Explanation

Solution

The correct option is (A) : A and B are mutually independent.