(a) What is the probability of George making a profit? (b) Sally finds out that George made a profit. What is the probability that he invested in Stoneside?

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
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4. Both George and Sally buy and sell stocks. Just recently George has
invested in one particular stock but won't tell Sally which stock it is.
Sally has narrowed it down to the three companies BHQ, Stoneside and
AusBank. From past experience, Sally knows that George will choose
BHQ 50% of the time, Stoneside 20% of the time, and AusBank 30%
of the time. Historically, Stoneside has made a profit for investors 90%
of the time, AusBank 80% of the time and BHQ 60% of the time.
(a) What is the probability of George making a profit?
(b) Sally finds out that George made a profit. What is the probability
that he invested in Stoneside?
Transcribed Image Text:4. Both George and Sally buy and sell stocks. Just recently George has invested in one particular stock but won't tell Sally which stock it is. Sally has narrowed it down to the three companies BHQ, Stoneside and AusBank. From past experience, Sally knows that George will choose BHQ 50% of the time, Stoneside 20% of the time, and AusBank 30% of the time. Historically, Stoneside has made a profit for investors 90% of the time, AusBank 80% of the time and BHQ 60% of the time. (a) What is the probability of George making a profit? (b) Sally finds out that George made a profit. What is the probability that he invested in Stoneside?
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