The addition theorem of probability for two events A and B states that P(A ∪ B) = P(A) + P(B) - P(A ∩ B). This formula accounts for: MCQ with Answer and Explanation
The addition theorem of probability for two events A and B states that P(A ∪ B) = P(A) + P(B) - P(A ∩ B). This formula accounts for:
A. The independence of events
B. The complement of event A
C. The double-counting of outcomes common to both A and B
D. The conditional probability of A given B
Answer: Option C
Solution (By JKSSB Mock Tests)
Subtracting P(A ∩ B) corrects for the fact that outcomes in the intersection are counted twice when adding P(A) and P(B), ensuring accurate probability calculation for the union.
Explanation:
Only Fisher's Ideal Index satisfies both the Time Reversal and Factor Reversal Tests; Laspeyres and Marshall-Edgeworth fail the factor test.
Explanation:
CPI weights items according to their share in average household consumption expenditure, derived from consumer expenditure surveys, to reflect the cost of living for typical families.
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