Question: Q5. A market analysis system is developed to decide when to buy securities. It is known from historical studies that 5% of a particular market
Q5. A market analysis system is developed to decide when to buy securities. It is known from historical studies that 5% of a particular market will turn out to be poor investments. The proposed system, applied to past data, correctly identifies 98% of poor investments as potential poor investments, but also identifies 15% of good investments as potential poor investments. Given that a security is scored as a potential poor investment, what is the probability that the security will turn out to be a poor investment?
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