SOLUTION: Currently each share of Oil Company A is traded for $2.13 per share. After the successful purchase of the oilfield, the stock price has 0.75 probability of going up next year.Howev

Algebra ->  Statistics  -> Binomial-probability -> SOLUTION: Currently each share of Oil Company A is traded for $2.13 per share. After the successful purchase of the oilfield, the stock price has 0.75 probability of going up next year.Howev      Log On


   

Question 1026648: Currently each share of Oil Company A is traded for $2.13 per share. After the successful purchase of the oilfield, the stock price has 0.75 probability of going up next year.However, if the company does not purchase the oilfield, its stock has only 0.15 probability of increasing in value.
A) What is the probability of Oil Company A share price going up next year?
B) As an investor who only invest in companies with greater than 25% probability of share price growth in one year, will you invest in Company A? Elaborate with answer.
Answer by ikleyn(52848) About Me  (Show Source):
You can put this solution on YOUR website!
.
This condition is incomplete.

With this condition the problem can not be solved.

Similar problem with the complete condition was posted earlier to this site and solved.