An investment advisor believes that there is a 30% chance of making money by investing in a specific stock. If the stock makes money, then there is a 52% chance that among those making money, they would also get a dividend. Find the probability that the investor makes money and receive a dividend.
15% |
16% |
30% |
52% |
Let event
= Making money by investing
Event
= Receiving dividend
Not receiving the dividend
The probability of making money by investing =
Given that the stock makes money, the probability of receiving dividends
=
Hence,
The probability that the investor makes money and does not receive a dividend:
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