Question: An analyst expects that 20 of all publicly traded companies
An analyst expects that 20% of all publicly traded companies will experience a decline in earnings next year. The analyst has developed a ratio to help forecast this decline. If the company is headed for a decline, there is a 70% chance that this ratio will be negative. If the company is not headed for a decline, there is a 15% chance that the ratio will be negative. The analyst randomly selects a company and its ratio is negative. What is the posterior probability that the company will experience a decline?
Answer to relevant QuestionsThe State Police are trying to crack down on speeding on a particular portion of the Massachusetts Turnpike. To aid in this pursuit, they have purchased a new radar gun that promises greater consistency and reliability. ...According to a global survey of 4,400 parents of children between the ages of 14 to 17, 44% of parents spy on their teen’s Facebook account (http://msnbc.com, April 25, 2012).Assume that American parents account for 10% of ...A professor of management has heard that eight students in his class of 40 have landed an internship for the summer. Suppose he runs into two of his students in the corridor.a. Find the probability that neither of these ...Apparently, depression significantly increases the risk of developing dementia later in life (BBC News, July 6, 2010).In a recent study it was reported that 22% of those who had depression went on to develop dementia, ...Identify the possible values of the following random variables. Which of the random variables are discrete?a. The numerical grade a student receives in a course.b. The grade point average of a student.c. The salary of an ...
Post your question