Question
1)The probability of a recession next year is 0.4.Given that there is a recession there is a 0.8 probability that QT Toys will have a
1)The probability of a recession next year is 0.4.Given that there is a recession there is a 0.8 probability that QT Toys will have a reduction in profits.If there is no recession the probability of reduced profits will be 0.2.What is the probability that QT toys will see a reduction in profits?
A.0.16
B.0.28
C.0.32
D.0.44
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Stochastic Calculus And Applications
Authors: Samuel N Cohen, Robert J Elliott
2nd Edition
1493928678, 9781493928675
