At what position on the number line is the red dot located?
1 answer:
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Answer:
The probability that the market will be actaully favourable is 0.9084
Step-by-step explanation:
Lets put names to the events
F = The market is favourable
U = The market is favourable (this is F^c)
PF = Gazelle predicts that the market is favourable
PU = Gazelle predicts that the market is unfavourable (this is PF^c)
Also, we know that
P(F) = 0.7
P(U) = 0.3
P(PF | F) = 0.85
P(PU | F) = 0.15
P(PF | U) = 0.2
P(PU | U) = 0.8
We want to know P(F |PF), we can obtain this probability using the ones that we are given and the Bayes Formula
The probability that the market will be actaully favourable is 0.9084
You can use your calculator to divide it out and find that
or, you can make use of your knowledge of the decimal equivalent if 1/11 (=0.90909...) and multiply that by -8 to get -0.727272... as above.