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Q4 [ 10 pts] LDA Suppose that we wish to predict whether a given stock will issue dividends this year (Yes or No) based on
Q4 [ 10 pts] LDA Suppose that we wish to predict whether a given stock will issue dividends this year (Yes or No) based on last year's percent prot (X). . We examine a large number of companies and discover that the mean value of X for companies that issued a dividend was I? = 10, while the mean for those that didn't was X = 0. In addition, the variance of X for these two sets of companies was 0'2 = 36. Finally, 30% of companies issued dividends. Auuming that X follows a normal distribution, predict the probability that a company will issue a dividend this year given that its percentage prot was X = 4 last year. Hint: - The normal density has this form: 1 2 2 _ -{z-#) {(20 ) a: _ e ) 21702 . You will need to use Bayes' theorem
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