# Probabililty -college level

• Nov 15th 2009, 01:38 PM
Anam123
Probabililty -college level
Hi, i need help with these following questions:

1. An investment advisor recommends the purchase of shares in Probabilistics, Inc. He has made the following predictions:

P(Stock goes up 20% Rise in GDP) = .6
P(Stock goes up 20% Level GDP) = .5
P(Stock goes up 20% Fall in GDP) = .4

An economist has predicted that the probability of a rise in the GDP is 30%, whereas the probability of a fall in the GDP is 40%.
• What is the probability that the stock will go up 20%?
• We have been informed that the stock has gone up 20%. What is the probability of a rise or fall in the GDP?
2. Suppose 300 misprints are distributed randomly throughout a book of 500 pages. Find the probability p that a given page contains (i) exactly 2 misprints, (ii) 2 or more misprints.
• Nov 16th 2009, 03:33 AM
mr fantastic
Quote:

Originally Posted by Anam123
Hi, i need help with these following questions:

1. An investment advisor recommends the purchase of shares in Probabilistics, Inc. He has made the following predictions:

P(Stock goes up 20% Rise in GDP) = .6
P(Stock goes up 20% Level GDP) = .5
P(Stock goes up 20% Fall in GDP) = .4

An economist has predicted that the probability of a rise in the GDP is 30%, whereas the probability of a fall in the GDP is 40%.
• What is the probability that the stock will go up 20%?
• We have been informed that the stock has gone up 20%. What is the probability of a rise or fall in the GDP?
2. Suppose 300 misprints are distributed randomly throughout a book of 500 pages. Find the probability p that a given page contains (i) exactly 2 misprints, (ii) 2 or more misprints.

Q1 (a) (0.6)(0.3) + (0.5)(0.3) + (0.4)(0.4) = ....
(b) [(0.6)(0.3) + (0.4)(0.4)]/[(0.6)(0.3) + (0.5)(0.3) + (0.4)(0.4)]

Q2 Get the mean number of misprints per page and note that the number of misprints on a page follows a Poisson distribution.
• Nov 16th 2009, 07:04 PM
Anam123