Q1. There is a 40% chance that the economy will be good next year and a 60% chance that it will be bad. If the economy is good, there is a 50 percent chance of a bull market, a 30% chance of a normal market, and a 20% chance of a bear market. If the economy is bad, there is a 20% chance of a bull market, a 30% chance of a normal market, and a 50% chance of a bear market. What is the joint probability of a good economy and a bull market? A) 50%. B) 20%. C) 12%.
Q2. What is the probability of a bull market next year? A) 32%. B) 20%. C) 50%.
Q3. For a stock, which of the following is least likely a random variable? Its: A) stock symbol. B) current ratio. C) most recent closing price.
Q4. If two events are mutually exclusive, the probability that they both will occur at the same time is: A) 0.00. B) 0.50. C) Cannot be determined from the information given.
Q5. Which of the following statements about probability is most accurate? A) An outcome is the calculated probability of an event. B) A conditional probability is the probability that two or more events will happen concurrently. C) An event is a set of one or more possible values of a random variable.
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