document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=204748>Question 204748</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Investors do not invest all their money in the investment predicted to be the best because it is too risky. An investor holds shares in three independent companies:Company A, Company B, and Company C. An analyst predicts the probability of profit increase for each as follows:<BR>\n" );
document.write( "Company A:0.70<BR>\n" );
document.write( "Company B:0.50<BR>\n" );
document.write( "Company C:0.065\r<BR>\n" );
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document.write( "A.)If the analyst's predictions are true, what is the probability that all three companies show a profit increase?\r<BR>\n" );
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document.write( "B.)If the analyst's predicitions are true, what is the probability that at least one company will show profit increase? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #154527 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=154527\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> An investor holds shares in three independent companies:Company A, Company B, and Company C. An analyst predicts the probability of profit increase for each as follows:<BR>\n" );
document.write( "Company A:0.70<BR>\n" );
document.write( "Company B:0.50<BR>\n" );
document.write( "Company C:0.065 <BR>\n" );
document.write( "A.)If the analyst's predictions are true, what is the probability that all three companies show a profit increase?<BR>\n" );
document.write( "---<BR>\n" );
document.write( "P(all show profit) = 0.7*0.5*0.065 = 0.02275...<BR>\n" );
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document.write( "B.)If the analyst's predicitions are true, what is the probability that at least one company will show profit increase?<BR>\n" );
document.write( "-----<BR>\n" );
document.write( "P(none show profit) = 0.3*0.5*0.935 = 0.14025..<BR>\n" );
document.write( "----<BR>\n" );
document.write( "P(at least one company shows profit) = 1-P(all show)-P(none show)<BR>\n" );
document.write( "= 1 - 0.02275 - 0.14025 = 0.8370...<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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