An investor iIs worried about the company's profit projections which investors think are too aggressive. One of the analysts will present a company-related report one week before the earnings announcement. Report shows analyst reports, while Forecast shows projected company profits Prior Probabilities P(Good Report) = 0.2 P(Medium Report) = 0.5 P(Bad Report) = 0.3 Conditional Probabilities P(Below Forecast | Good Report) = 0.1 P(Below Forecast | Medium Report) = 0.4 P(Below Forecast Bad Report) = 0.9 What is the probability that the analyst will present a good report given the below forecast company profit (below forecast)?
An investor iIs worried about the company's profit projections which investors think are too aggressive. One of the analysts will present a company-related report one week before the earnings announcement. Report shows analyst reports, while Forecast shows projected company profits Prior Probabilities P(Good Report) = 0.2 P(Medium Report) = 0.5 P(Bad Report) = 0.3 Conditional Probabilities P(Below Forecast | Good Report) = 0.1 P(Below Forecast | Medium Report) = 0.4 P(Below Forecast Bad Report) = 0.9 What is the probability that the analyst will present a good report given the below forecast company profit (below forecast)?
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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Transcribed Image Text:An investor iIs worried about the company's profit projections which investors think are too
aggressive. One of the analysts will present a company-related report one week before the earnings
announcement. Report shows analyst reports, while Forecast shows projected company profits
Prior Probabilities
P(Good Report) = 0.2
P(Medium Report) = 0.5
P(Bad Report) = 0.3
Conditional Probabilities
P(Below Forecast | Good Report) = 0.1
P(Below Forecast | Medium Report) = 0.4
P(Below Forecast Bad Report) = 0.9
What is the probability that the analyst will present a good report given the below forecast company
profit (below forecast)?
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