MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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An investor in Microsoft is worried the latest management earnings forecast is too aggressive and the company will fall short. His favorite analyst that covers the company is going to release his report the week before the earnings announcement. The report stands for the analyst’s report and Forecast stands for the earnings announcement.
Prior Probabilities |
Conditional Probabilities |
P(Good Report) = 0.2 |
P(Below Forecast | Good Report) = 0.1 |
P(Medium Report) = 0.5 |
P(Below Forecast | Medium Report) = 0.4 |
P(Bad Report) = 0.3 |
P(Below Forecast | Bad Report) = 0.9 |
What is the
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