Originally Posted by
melissa4ever 
Investors do not invest all their money in the investment predicted to be the best because it too risky. An investor holds shares in 3 independent companies. Company a, Company b, company C an analysts predicts the probability of profit increases for each company as follows:
Company A: 0.70
Company B: 0.50
Company C: 0.65
If the analyst’s predictions are true, what is the probability that all three companies show a profit increase?
I am not sure how to do this question but I believe:
Probability of all three:
(0.75) (0.50) (0.65)
= 0.24375 --> .244 :o
