Question

An investment consultant predicts that the odds against the price of a certain stock going up are 2:1 and
odd are in favor of the price remaining the same are 1:3 .what is the probability that the price of stock
will
go
down?
(a) 5/12
(b) 7/12
(c) 1/3
(d) /​

Answer 1

Step-by-step explanation:

ANSWER

Let A denote the event 'stock price will go up', and B be the event 'stock price will remain same'.

Then P(A)=

3

1

and P(B)=

4

1

.

∴P( stock price will either go up or remain same ) is

P(A∪B)=P(A)+P(B)=

3

1

+

4

1

=

12

7

Hence probability that stock price will go down is given by

P(

A

∩

B

)=1−P(A∪B)=1−

12

7

=

12

5

Answered By

Answer 2

Answer:

answer is 5/12

Step-by-step explanation:

price stock will go up

P(AuB) =P(A) +P(B)

=1/4 + 1/3

=7/12

price stock will go down= 1-P(AuB)

=5/12