# Question: The Congressional Budget Office estimates that if the economy continues

The Congressional Budget Office estimates that if the economy continues to grow at the current rate, there is a 95% probability that the federal defcit will be eliminated without raising taxes within the next 5 years. If the economy slows, that probability drops to 30%, but if it accelerates, the probability increases to 99%. Economists generally agree that there is a 60% chance that the economy will continue to grow at the current rate, a 25% chance that it will slow, and a 15% chance that it will accelerate. Use this information to estimate the likelihood that the federal defcit will indeed be eliminated without new taxes within fve years.

## Answer to relevant Questions

Canzano Home Products is trying to assess the likelihood that its proposed new “Royal Family” product line will be successful. The plan is to develop the new line ONLY if its probability of success appears to be more ...Bolton Securities is about to implement a drug-testing procedure for company employees. In a recent anonymous survey, 20% of Bolton’s employees admitted to using illegal drugs. The random drug testing procedure is not ...Refer to Exercise 65. Construct a joint probability table for the situation described there. Use the table to compute the probability that In Exercise 65 Two newly hired employees at Gordian Yacht, a luxury boat ...Below is a table showing the probability distribution for the random variable “number of stocks doubling in value” described in Exercise 5. Number of Stocks Doubling Probability X P(x) 0................ ...A psychological exam was given to 50 professional athletes. Scores are given below: Score Number of Athletes 20.......... 8 30.......... 18 40.......... 12 50.......... 6 60.......... 4 70.......... 2 50 a. If you ...Post your question