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.