If two events A and B are mutually exclusive, P(A or B) equals which?

Prepare for the PHFO Quantitative Analysis For Business Exam. Study with flashcards, multiple choice questions, hints, and explanations to ensure confidence and success in your exam!

Multiple Choice

If two events A and B are mutually exclusive, P(A or B) equals which?

Explanation:
Mutually exclusive means A and B cannot occur at the same time, so their intersection has probability zero. The general formula for the probability of A or B is P(A ∪ B) = P(A) + P(B) − P(A ∩ B). Since P(A ∩ B) = 0 in this case, it simplifies to P(A) + P(B). Therefore, the probability of A or B equals the sum of their probabilities. The other options don’t fit because they imply different relationships: the product would be the probability of both occurring under certain conditions (like independence), which isn’t possible here; subtracting would miscount the overlap; taking the maximum wouldn’t generally give the union probability.

Mutually exclusive means A and B cannot occur at the same time, so their intersection has probability zero. The general formula for the probability of A or B is P(A ∪ B) = P(A) + P(B) − P(A ∩ B). Since P(A ∩ B) = 0 in this case, it simplifies to P(A) + P(B). Therefore, the probability of A or B equals the sum of their probabilities.

The other options don’t fit because they imply different relationships: the product would be the probability of both occurring under certain conditions (like independence), which isn’t possible here; subtracting would miscount the overlap; taking the maximum wouldn’t generally give the union probability.

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