An economist believes that during periods of high economic growth,the dollar appreciates with probability 0.70, in periods of moderateeconomic growth, the dollar appreciates with probability 0.40, andduring period of low economic growth, the dollar appreciates withprobability 0.20. During any period of time, the probability of higheconomic growth is 0.30, the probability of moderate growth is 0.50,and the probability of low economic growth is 0.20. Suppose the dollarhas been appreciating during the present period. What is theprobability if we are experiencing a period of high economic growth?

Answered: Image /qna-images/answer/152a321c-b537-4d39-869e-da5d796027b2.jpg

Answered: An economist believes that during…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Suppose a free throw shooter makes 67 percent of their first attempts. On the second attempt they make 81 percent if they had made their first attempt, but 59 percent if they had miss. What is the probability that they make one of two attempts (one or the other attempt, but not both)?
Suppose an oil company is thinking of buying some land for $10,000,000. There is a 60%60% chance of economic growth and a 40%40% chance of recession. The probability of discovering oil is 44%44% when there is economic growth and 32%32% when there is a recession. If there is economic growth and the oil company discovers oil, the value of the land will triple. If they do not discover oil, the value of the land will decrease by 10%.10%. If there is a recession and the company discovers oil, the value of the land will increase by 50%.50%. If they do not discover oil, the land will decrease in value by 75%.75%. What is the expected value of the investment? Give your answer to the nearest dollar. Avoid rounding within calculations. $$ Select the correct interpretation of the expected value. The expected value represents what the actual investment value will be for this land purchase of $10,000,000. The company should make the investment because the expected value…
Analysts expects that 11% of all publicly traded companies will experience a decline in earnings next year. If a company is headed for a decline, there is a 74% chance that this ratio will be negative. If the company is not headed for a decline, there is only a 20% chance that the ratio will be negative. The analyst randomly selects a company and its ratio is negative. What is the probability that the company will experience a decline?
An analyst attempting to predict a corporation’s earnings next year believes that the corporation’s business is quite sensitive to the level of interest rates. He believes that, if average rates in the next year are more than 1% higher than this year, the probability of significant earnings growth is 0.1. If average rates next year are more than 1% lower than this year, the probability of significant earnings growth is estimated to be 0.8. Finally, if average interest rates next year are within 1% of this year’s rates, the probability for significant earnings growth is put at 0.5. The analyst estimates that the probability is 0.25 that rates next year will be more than 1% higher than this year and 0.15 that they will be more than 1% lower than this year.a. What is the estimated probability that both interest rates will be 1% higher and significant earnings growth will result?b. What is the probability that this corporation will experience significant earnings growth?c. If the…
Suppose that if person with tuberculosis is given a TB screening, the probability that his or her condition will be detected is 0.90. If a person without tuberculosis is given a TB screening , the probability that he or she will be diagnosed incorrectly as having tuberculosis is 0.3. Suppose, further, that 11% of the adult residents of a certain city have tuberculosis. If one of these adults is diagnosed as having tuberculosis based on the screening, what is the probability that he or she actually has tuberculosis?
Suppose that the prevalence of diabetes in the U.S. is 10% and that the prevalence of cardiovascular disease is 20%. Suppose also that 5% of people in the U.S. have both diabetes and cardiovascular disease. Suppose Jack has diabetes. What is the probability that he also has cardiovascular disease?

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