Results 1 to 2 of 2

Math Help - company+ probability

  1. #1
    Newbie
    Joined
    Nov 2006
    Posts
    3

    Thumbs up company+ probability

    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 analystís 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
    Follow Math Help Forum on Facebook and Google+

  2. #2
    is up to his old tricks again! Jhevon's Avatar
    Joined
    Feb 2007
    From
    New York, USA
    Posts
    11,663
    Thanks
    3
    Quote Originally Posted by melissa4ever View Post
    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 analystís 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
    it should be 0.7(0.5)(0.65)
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Replies: 1
    Last Post: December 12th 2010, 10:49 PM
  2. A bus company...
    Posted in the Calculus Forum
    Replies: 2
    Last Post: November 18th 2009, 01:21 PM
  3. A packaging company...
    Posted in the Calculus Forum
    Replies: 3
    Last Post: November 12th 2009, 04:13 PM
  4. company problem
    Posted in the Business Math Forum
    Replies: 1
    Last Post: May 27th 2008, 06:29 AM
  5. Insurance Company accident probability
    Posted in the Advanced Statistics Forum
    Replies: 2
    Last Post: May 19th 2007, 02:00 AM

Search Tags


/mathhelpforum @mathhelpforum