QUESTION one

A shareholder is considering disposing off her investments in shares in the mining industry. If the market value of her investments in shares rise by at least 5% the chance she will dispose- off the shares is 65%. If the market value of her investments in shares rise by less than 5%, the chance she will dispose of the shares is 95%

Find the probability that she will sell her shares. (5 marks)

If you are told that she sold off her shares, what is the probability that the market value of her shares rose by at least 5%. (5 marks)