A firm is modeling the uncertainty in its sales. Let X represent the firm's sales. X...
A firm is modeling the uncertainty in its sales. Let X represent the firm's sales. X can be high sales with probability 0.3, medium sales with probability 0.4, or low sales with probability 0.3. Mathematically, P(X = high) = 0.3, P(X = medium) = 0.4, and P(X = low) = 0.3
Let Y be the status of the economy. The conditional probability that the firm's sales are high given the economy is good is 0.7. Mathematically, this is written as P(X = high | Y = good) = 0.7.
The probability the economy is good is 0.5, or P(Y = good) = 0.5.
What is the joint probability that the firm's sales are high and the economy is good, or what is P(X = high, Y = good)?
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