Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Our Q&A platform offers a seamless experience for finding reliable answers from experts in various disciplines. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.
Sagot :
To determine the probability that the FDA will approve the treatment and the value of Bruce's investments will double, we need to consider the following probabilities:
1. The probability that the FDA will grant approval for the treatment, \( P(A) \), is 50% or 0.50.
2. The probability that the value of the stock will double given that FDA approval is granted, \( P(B|A) \), is 85% or 0.85.
We are looking for the joint probability that both events will occur: FDA approval is granted and the stock value will double. This is represented as \( P(A \cap B) \).
The joint probability of two events \( A \) and \( B \) occurring is given by:
\[ P(A \cap B) = P(A) \times P(B|A) \]
Substituting the given probabilities:
\[ P(A \cap B) = 0.50 \times 0.85 = 0.425 \]
Therefore, the probability that the FDA will approve the treatment and the value of Bruce's investments will double is 0.425, or 42.5%.
Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.
