Probability of SUV Sales Decline Due to Gasoline Price Increase | CFA® Level 1 Exam Prep

Probability of SUV Sales Decline

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The probability that SUV sales will decline by over 10% by June 1 if gasoline prices increase by 50% by May 1, is called:

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A. B. C. D.

D

A conditional probability takes the form of P(A|B), the probability that a an event (A) will happen, given the occurrence of another event, B. It is conditional because it is conditioned on another event, B.