A consulting organization predicts whether corporations' earnings for the coming year will be unusually low, unusually high,
Question:
a. What proportion of predictions have been for unusually high earnings?
b. What proportion of outcomes have been for unusually high earnings?
c. If a firm were to have unusually high earnings, what is the probability that the consulting organization would correctly predict this event?
d. If the organization predicted unusually high earnings for a corporation, what is the probability that these would materialize?
e. What is the probability that a corporation for which unusually high earnings had been predicted will have unusually low earnings?
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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