Question: A financial analyst predicts that in the next year, there will be a 70% chance of a recession. If a recession were to occur, the

A financial analyst predicts that in the next year, there will be a 70% chance of a recession. If a recession

were to occur, the value of her mutual funds is expected to increase with a 20% chance. If there were no

recession, there is a 80% chance that the value of her mutual funds will increase. Using the following

information, calculate the following probabilities:

A) That her mutual funds will increase

B) That her mutual funds will not increase

C.) That given her mutual funds increase, there is a recession

D) That given her mutual funds will not increase, there is not a recession

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