A friend is considering buying stock in TESLA, a car company focused on fuel-efficiency. If the Gas Price goes down, the probability of TESLA stock price going down is 60%. When the Gas Price goes up, the probability of TESLA stock price going up is 70%. History shows there is a 80% chance of the Gas Price increasing over the next month. What is the probability that the TESLA stock price decreases over the next month?   0.56   0.27   0.45   0.36

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter2: Exponential, Logarithmic, And Trigonometric Functions
Section2.3: Applications: Growth And Decay
Problem 16E
icon
Related questions
Question

A friend is considering buying stock in TESLA, a car company focused on fuel-efficiency. If the Gas Price goes down, the probability of TESLA stock price going down is 60%. When the Gas Price goes up, the probability of TESLA stock price going up is 70%. History shows there is a 80% chance of the Gas Price increasing over the next month. What is the probability that the TESLA stock price decreases over the next month?

 

0.56

 

0.27

 

0.45

 

0.36

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Recommended textbooks for you
Calculus For The Life Sciences
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition…
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
College Algebra
College Algebra
Algebra
ISBN:
9781337282291
Author:
Ron Larson
Publisher:
Cengage Learning