Solution-Find rate-maria expect her business to grow next

Find rate-maria expect her business to grow next year

Reference no: EM131567660

Question: Maria sees the growth of her business for the upcoming year being tied to the gross domestic product. She believes that her business will grow or contract at the rate of 5%, 4.5%, 3%, 0% or -0.5% per year if the GDP grows or contracts at the rate of between 2 and 2.5%, between 1.5 and 2%, between 1 and 1.5% between 0 and 1% and between -1 and 0% respectively. Maria has decided to assign a probability of 0.13, 0.24, 0.39, 0.19 and 0.05 respectively to each outcome. At what rate does Maria expect her business to grow next year?

Reference no: EM131567660

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Find rate-maria expect her business to grow next year

Reference no: EM131567660

Reference no: EM131567660

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