A data analyst attempting to predict a tech company's earnings in the year of 2024 believes that the tech's business is quite sensitive tothe level of interest rates. He believes that, if the average interest rates in the year of 2024 are more than 1% higher than this year, theprobability of significant earnings growth is 0.1. If the average interest rates in the year 2024 are more than 1% lower than this year, theprobability of significant earnings growth is estimated to be 0.8. If the interest rates for year 2024 are within 1% of this year's rates, theprobability for significant earnings growth is at 0.5. The data analyst estimates that the probability is 0.25 that the average interest rates inthe year 2024 will be more than 1% higher than this year and 0.15 that they will be more than 1% lower than this year. If the companyexhibits significant growth, what is the probability that the average interest rates will have been more than 1% higher than in the currentyear?

Let Y be the event of significant earning growth.Let X1 be the event that average interest rates in…

Answered: A data analyst attempting to predict a…

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section6.1: Exponential Functions

Problem 3SE: The Oxford Dictionary defines the word nominal asa value that is “stated or expressed but...

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The Shrinking Rainy Day Fund. On October 5, 2015 The Boston Globe published a story headlined "state's rainy day fund has dwindled over past decade" that said (in part): In the summer of 2007, before the massive recession began, the rainy day fund had $2.3 billion--a cushion of about 7.8 percent of total state spending, according to the taxpayers' foundation. This summer, the rainy day balance stood at $1.1 billion--about 2.7 percent of total state spending, a fraction small enough to raise a red flag for analysis. Calculate total state spending as of the summer of 2007 and this past summer (2015).
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