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The economy for the coming year is expected to be weak with a probability of 0. Given that it is weak; you expect a dividend will be declared for...

The economy for the coming year is expected to be weak with a probability of 0.7. Given that it is weak; you expect a dividend will be declared for stock xyz with a probability of 0.9. However, if the market is not weak next year, then the dividend will be declared with a probability of 0.2.

a) find the probability that the next year's economy is weak and xyz declares a dividend.

b) find the probability that a dividend is issued.

c) find the probability that the next year's economy is weak given that a dividend is issued

(a) Probability that the next year's economy is weak and xyz declares a... View the full answer

a) ﻿ p = 0 , 6 3 ﻿ b)... View the full answer

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