Investor in Australian Stock Exchange (ASX) tells, he predicts that there is a 60% probability that the Australian All ordinary Index will increase tomorrow. Which approach was used to produce this figure? Interpret the 60% probability.
Investor in Australian Stock Exchange (ASX) tells, he predicts that there is a 60% probability that the Australian All ordinary Index will increase tomorrow. Which approach was used to produce this figure? Interpret the 60% probability.
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
Related questions
Question
- Investor in Australian Stock Exchange (ASX) tells, he predicts that there is a 60%
probability that the Australian All ordinary Index will increase tomorrow.- Which approach was used to produce this figure?
- Interpret the 60% probability.
- All the Banks in Australia analysed the status of customer accounts at the end of the concessions period for loan repayments due to Global Pandemic. According to that one of the banks classified their loan accounts in two different ways (i)” overdue” and “not overdue” and (ii) Old and new. The table below shows the identified probabilities.
|
|
Overdue |
Not overdue |
|
New |
0.06 |
0.13 |
|
Old |
0.52 |
0.29 |
One account is randomly selected.
- If the account is overdue, what is the probability that it is new?
- If the account is new, what is the probability that it is overdue?
- Is the age of the account related to whether it is overdue? Explain
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
