This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: is .5. Also, the probability that both fixed costs and demand will be high is .4. The probability that both fixed costs and demand will be high in both markets is .35. The probability that both fixed costs and demand will be low in both markets is .25. The probability that fixed costs will be low and demand will be high in both markets is .125. The probability is zero that fixed costs and demand will both be high in one market, and both be low in the other market. The remaining probability is evenly distributed over the remaining basic outcomes. Give the probability distribution over the sample space. f. Are the two markets statistically independent? Explain why or why not. g. What is P(A)? What is P(B)?...
View
Full Document
 Spring '12
 BENCIVENGA
 Economics, Statistics, Probability theory, Energy costs

Click to edit the document details