What is posterior probability that company will experience

Assignment Help Management Theories

Reference no: EM131460288

Question: An analyst expects that 20% of all publicly traded companies will experience a decline in earnings next year. The analyst has developed a ratio to help forecast this decline. If the company is headed for a decline, there is a 70% chance that this ratio will be negative. If the company is not headed for a decline, there is a 15% chance that the ratio will be negative. The analyst randomly selects a company and its ratio is negative. What is the posterior probability that the company will experience a decline?

Reference no: EM131460288

Questions Cloud

What is the probability that christine fails the course : Christine has always been weak in mathematics. Based on her performance prior to the final exam in Calculus, there is a 40% chance that she will fail.

What is the new price of the? bond : The YTM at the beginning of the third year of the bond? (8 years left to? maturity) is 9?%. What is the new price of the? bond?

Examine apples statement of cash flows : Examine Apple's statement of cash flows. Recommend at least two actions that Apple could take in order to maximize the use of its cash flows.

Savings account pays : Assume that the savings account pays you 6.85 percent compounded monthly.

What is posterior probability that company will experience : An analyst expects that 20% of all publicly traded companies will experience a decline in earnings next year. The analyst has developed a ratio to help forecast

Will the company be able to pay its debts as they come due : Will the company be able to pay its debts as they come due? Which of the following activities involves collecting the necessary funds to support the business?

Today at an interest rate : If you invest $15,356 today at an interest rate of 7.16 percent, compounded daily, how much money will you have in your savings account in 16 years?

Inventory conversion period : QUESTION 1: Using this information, how many days were in the Inventory Conversion Period in 2015?

What is the probability that the gun detects speeding : The State Police are trying to crack down on speeding on a particular portion of the Massachusetts Turnpike. To aid in this pursuit, they have purchased.

User Account

All Pages