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Jim Macfarlane owns shares of stock in both Evergreen Company and Daylight Company. Jim has recorded the performance of these shares on each day for

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Jim Macfarlane owns shares of stock in both Evergreen Company and Daylight Company. Jim has recorded the performance of these shares on each day for a 300 day period, observing whether the price of these shares has risen, fallen or remain unchanged. Assume the 300 day period is a good indication of the future, so we can use this data to determine probabilities of these events occurring again. Jim's data is as follows: Evergreen Daylight Event Company Company # of days E1 Rise Rise 70 E2 Rise Unchanged 40 E3 Rise Fall 28 E4 Unchanged Rise 30 E5 Unchanged Unchanged 18 E6 Unchanged Fall 20 E7 Fall Rise 28 E8 Fall Unchanged 16 E9 Fall Fall 50 Define the following additional events: Let event A = rise in Evergreen Company event B = fall in Daylight Company event C = unchanged price in Evergreen Company event D = unchanged price in Daylight Company

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