PRC-2 · Chapter 11 · Question 12 of 60
If an investment scenario guarantees a payout with absolutely zero risk of failure, the mathematical probability of receiving the payout is precisely:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 1
Explanation
In probability theory, an event that is absolutely certain to occur always has a mathematical probability of exactly 1.
More Probability Concepts MCQs
- Q14When calculating expected values in a business scenario, how is the Expected Value (EV) mathematically derived?
- Q15In standard notation, what does the expression P(A|B) technically represent?
- Q16Which of the following is a mandatory mathematical requirement for any valid discrete probability distribution?
- Q17A discrete probability distribution describes outcomes that are:
- Q18In the context of a discrete probability distribution, the 'Expected Value' (E[X]) is mathematically synonymous with: