The coming year is expected to be a good one with probability 0.70. Given that it is

Question:

The coming year is expected to be a good one with probability 0.70. Given that it is a good year, you expect that a will be declared with probability 0.90. However, if it is not a good year, then a will occur with probability 0.20.
a. Draw a probability tree for this situation, with the most appropriate choice for the first branch.
b. Find the probability that it is a good year and a is issued.
c. Find the probability that a is issued.
d. Find the conditional probability that it is a good year, given that a is issued.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...