Question: suppose that we wish to predict whether a certain stock, Firm A, will issue a dividend this year (Yes or No) based on x, last

suppose that we wish to predict whether a certain stock, Firm A, will issue a dividend this year ("Yes" or "No") based on x, last year's percent profit.

We examine a large number of companies and discover that:

For prior probabilities, there is straight pi subscript yes = 86% chance a company will issue a dividend.

Firm A's last year percentage profit was x = 4.

The estimated probability densities are as following:

fyes(4) = 0.08

fyes(4)= 0.05

Predict the probability that Firm A will issue a dividend.

Please round to 3 decimal places. Do not answer in percentage.

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