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According to a prominent investment adviser, Company X has a 50% chanc
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28 Feb 2024, 20:39
28 Feb 2024, 20:39
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According to a prominent investment adviser, Company X has a 50% chance of posting a profit in the coming year, whereas Company Y has a 60% chance of posting a profit in the coming year.
Select for Least probability for both the least probability, compatible with the probabilities provided by the investment adviser, that both Company X and Company Y will post a profit in the coming year. And select for Greatest probability for both the greatest probability, compatible with the probabilities provided by the investment adviser, that both Company X and Company Y will post a profit in the coming year. Make only two selections, one in each column.
All Data Insight question: TPA [ Official Guide DI Review 2023-24]
According to a prominent investment adviser, Company X has a 50% chance of posting a profit in the coming year, whereas Company Y has a 60% chance of posting a profit in the coming year.
Select for Least probability for both the least probability, compatible with the probabilities provided by the investment adviser, that both Company X and Company Y will post a profit in the coming year. And select for Greatest probability for both the greatest probability, compatible with the probabilities provided by the investment adviser, that both Company X and Company Y will post a profit in the coming year. Make only two selections, one in each column.
| Least probability for both | Greatest probability for both | |
| 5% | ||
| 10% | ||
| 25% | ||
| 50% | ||
| 60% | ||
| 80% |
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Official Answer
Least probability for both: 10%
Greatest probability for both: 50%
Re: According to a prominent investment adviser, Company X has a 50% chanc
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07 Mar 2024, 22:33
07 Mar 2024, 22:33
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Expert Reply
chetan2u wrote:
According to a prominent investment adviser, Company X has a 50% chance of posting a profit in the coming year, whereas Company Y has a 60% chance of posting a profit in the coming year.
Select for Least probability for both the least probability, compatible with the probabilities provided by the investment adviser, that both Company X and Company Y will post a profit in the coming year. And select for Greatest probability for both the greatest probability, compatible with the probabilities provided by the investment adviser, that both Company X and Company Y will post a profit in the coming year. Make only two selections, one in each column.
All Data Insight question: TPA [ Official Guide DI Review 2023-24]
According to a prominent investment adviser, Company X has a 50% chance of posting a profit in the coming year, whereas Company Y has a 60% chance of posting a profit in the coming year.
Select for Least probability for both the least probability, compatible with the probabilities provided by the investment adviser, that both Company X and Company Y will post a profit in the coming year. And select for Greatest probability for both the greatest probability, compatible with the probabilities provided by the investment adviser, that both Company X and Company Y will post a profit in the coming year. Make only two selections, one in each column.
We do not know the relation between the two events. We cannot say that they must be independent. Whay if both companies have the same suppliers and markets? There could be a strong correlation between their chance of posting profits. Or the two companies could be totally independent. The point is, we do not know the relation between the two events.
Probability works just as Sets does.
Minimum:
Both and Neither move together. For Both to be minimum, Neither = 0
P(X or Y) = P(X) + P(Y) - P(Both)
P(X or Y) = .5 + .6 - P(Both)
For P(Both) to be minimum, P(X or Y) must be maximum i.e. 1.
1 = .5 + .6 - P(Both)
P(Both) = .1
Maximum:
P(Both) cannot be greater than either one individually so maximum value of P(Both) will be .5
Hence, select 10% and 50%.
How Both and Neither work together in Overlapping Sets is discussed in this video on my YouTube channel.
General Discussion
According to a prominent investment adviser, Company X has a 50% chanc
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06 Mar 2024, 23:06
06 Mar 2024, 23:06
