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Author Question: An investment advisor recommends the purchase of stock shares in Infomatics, Inc He has made the ... (Read 26 times)

asan beg

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An investment advisor recommends the purchase of stock shares in Infomatics, Inc He has made the following predictions: P(Stock goes up 20  Rise in GDP) = .6 P(Stock goes up 20  Level GDP) = .5 P(Stock goes up 20  Fall in GDP) = .4 An economist has predicted that the probability of a rise in the GDP is 30, whereas the probability of a fall in the GDP is 40.
 a. What is the probability that the stock will go up 20?
  b. We have been informed that the stock has gone up 20. What is the probability of a rise or fall in the GDP?

Question 2

The interval estimate of an individual value of y for a given value of x is
 a. prediction interval estimate
  b. confidence interval estimate
  c. average regression
  d. x versus y correlation interval



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kingdude89

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Answer to Question 1

a. .49
b. .367 + .327 = .694

Answer to Question 2

A





 

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