Question

An analyst thinks that next year there is a 20% chance that the world economy will be good, a 50% chance that it will be neutral, and a 30% chance that it will be poor. She also predicts probabilities that the performance of a start-up firm, Creative Ideas, will be good. neutral, or poor for each of the economic states of the world economy.The following table presents probabilities for three states of the world economy and the corresponding conditional probabilities for Creative Ideas state of the Probability of Perfornance of Conditional Probability Norld Econony Economic State Good Creative Ideas of Creative Ideas 0.60 0.30 0.10 0.40 0.30 0.30 0.20 0.30 0.50 0.20 Good Neutral Poor Good Neutral Poor Good Neutral Poor Neutra1 0.50 Poor 0.30 a. What is the probability that the performance of the world economy will be neutral and that of creative ideas will be poor? (Round your answer to 2 decimal places.) Probability b. What is the probability that the performance of Creative Ideas ill be poor? (Round your answer to 2 decimal places.) Probability

Answer 1