An investment consultant predicts that the odds against the price of a certain stock going up are 2:1 and odd are in favor of the price remaining the same are 1:3 .what is the probability that the price of stockwillgodown?(a) 5/12(b) 7/12(c) 1/3(d) /

An investment consultant predicts that the odds against the price of a

1.	An investment consultant predicts that the odds against the price of a certain stock going up are 2:1 and odd are in favor of the price remaining the same are 1:3 .what is the probability that the price of stockwillgodown?(a) 5/12(b) 7/12(c) 1/3(d) /
Answer» -step explanation:ANSWERLet A denote the event 'stock price will go up', and B be the event 'stock price will REMAIN same'.Then P(A)= 31 and P(B)= 41 .∴P( stock price will either go up or remain same ) isP(A∪B)=P(A)+P(B)= 31 + 41 = 127 Hence probability that stock price will go down is given byP( A ∩ B )=1−P(A∪B)=1− 127 = 125 Answered By