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Answer: 0.96
D is correct. Our goal is to find P(B U A), which is given by P(B U A) = P(A)+P(B)- P(BnA). To calculate this, we first denote the following events: Let P(A) = probability that the central monetary authority distributes the stablecoins to the public for use = 70% P(B) = probability of businesses accepting stablecoins as payment = 40% P(BA) = probability of businesses accepting stablecoins as payment given that the central monetary authority distributes the stablecoins to the public for use = 20%. From the following, we can obtain P(BnA) = P(B|A)*P(A) = 0.20*0.70=0.14. We want to find P(A U B) or P(B U A). P(B U A) = P(A)+P(B)-P(BnA) = 0.40+0.70-0.14 = 0.96 or 96% A is incorrect. This is P(B|A)/P(A). B is incorrect. This is P(B|A)+P(B). C is incorrect. This is P(BnA)+P(A).
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A financial risk analyst working for an investment firm that is interested in blockchain technology is monitoring a stablecoin initiative in an Asian nation. This initiative is managed by the central bank, which is on the verge of deciding whether to issue the stablecoins for public use. The analyst considers the following two possible events:
Event A: The central bank releases the stablecoins for public use. Event B: Companies within the nation begin accepting stablecoins as a form of payment.
The analyst provides the following probability estimates:
What is the likelihood that either Event A or Event B will occur?
A
0.29
B
0.60
C
0.84
D
0.96