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Commodity prices rise 40% of the time in which case profits come 15%. Commodity prices steady 20% of the time in which case profits come
Commodity prices rise 40% of the time in which case profits come 15%. Commodity prices steady 20% of the time in which case profits come 35%. Commodity prices fall 40% of the time in which case profits come 45% Given that profits are made, what is the probability that commodity prices, R, S, F? Also how would a decision tree be drawn? How are the numbers determined for each one? I still do not understand decision trees. |
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