Which expression correctly represents P[x], the probability of outcome x?

Prepare for the CIMA Fundamentals of Management Accounting Exam with flashcards and multiple choice questions, each with explanations and tips. Ace your exam with confidence!

Multiple Choice

Which expression correctly represents P[x], the probability of outcome x?

Explanation:
Probability of a specific outcome is the number of ways that outcome can occur divided by the total number of possible outcomes, assuming all outcomes are equally likely. If x can occur in k different ways and there are N total outcomes, then P[x] = k/N. This means more favorable ways raise the probability, while a larger set of possible outcomes lowers it. The other forms don’t match how probability works: dividing total outcomes by favorable ways gives an inverted ratio, squaring the number of ways isn’t meaningful for a probability, and summing probabilities of all outcomes equals 1, not the chance of a single outcome.

Probability of a specific outcome is the number of ways that outcome can occur divided by the total number of possible outcomes, assuming all outcomes are equally likely. If x can occur in k different ways and there are N total outcomes, then P[x] = k/N. This means more favorable ways raise the probability, while a larger set of possible outcomes lowers it. The other forms don’t match how probability works: dividing total outcomes by favorable ways gives an inverted ratio, squaring the number of ways isn’t meaningful for a probability, and summing probabilities of all outcomes equals 1, not the chance of a single outcome.

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