Reading 8: Probability Concepts - LOS h ～ Q1-2 日志

mayanfang1

Q1. An analyst announces that an increase in the discount rate next quarter will double her earnings forecast for a firm. This is an example of a:

A)  use of Bayes' formula

B)  conditional expectation.

C)  joint probability.

Q2. A conditional expectation involves:

A)   refining a forecast because of the occurrence of some other event.

B)   calculating the conditional variance.

C)   determining the expected joint probability.

mayanfang1

答案和详解如下：

Q1. An analyst announces that an increase in the discount rate next quarter will double her earnings forecast for a firm. This is an example of a:

A)  use of Bayes' formula

B)  conditional expectation.

C)  joint probability.

Correct answer is B)

This is a conditional expectation. The analyst indicates how an expected value will change given another event.

Q2. A conditional expectation involves:

A)   refining a forecast because of the occurrence of some other event.

B)   calculating the conditional variance.

C)   determining the expected joint probability.

Correct answer is A)

Conditional expected values are contingent upon the occurrence of some other event. The expectation changes as new information is revealed.

tofjing

[em01]

jacky_z

Thanks

ff1980

thanks

zeraeh

看答案，谢谢LZ

saint_zhu

probability

happysunlu

thanks a lot!

dullmul

answers

hjl2000

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