A financial analyst estimates that the probability that the economy will experience a recession in the next 12 months is 25%. She also believes that if the economy encounters a recession, the probability that her mutual fund will increase in value is 20%. If there is no recession, the probability that the mutual fund will increase in value is 75%. Find the probability that the mutual fund’s value will increase.
Answer to relevant QuestionsRefer to Exercise 6.48. Find the following.a. P(A0B)b. P(AC0B)c. P(A0BC )d. P(AC0BC )Three airlines serve a small town in Ohio. Airline A has 50% of all the scheduled flights, airline B has 30%, and airline C has the remaining 20%. Their on-time rates are 80%, 65%, and 40%, respectively. A plane has just ...The effect of an antidepressant drug varies from person to person. Suppose that the drug is effective on 80% of women and 65% of men. It is known that 66% of the people who take the drug are women. What is the probability ...Researchers have developed statistical models based on financial ratios that predict whether a company will go bankrupt over the next 12 months. In a test of one such model, the model correctly predicted the bankruptcy of ...The mark on a statistics exam that consists of 100 multiple-choice questions is a random variable.a. What are the possible values of this random variable?b. Are the values countable? Explain.c. Is there a finite number of ...
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