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Find the probability that the next year economy

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Reference no: EM131927756

The economy for the coming year is expected to be weak with a probability of 0.7. Given that it is weak; you expect a dividend will be declared for stock xyz with a probability of 0.9. However, if the market is not weak next year, then the dividend will be declared with a probability of 0.2.

a) Find the probability that the next year's economy is weak and xyz declares a dividend.

b) Find the probability that a dividend is issued.

c) Find the probability that the next year's economy is weak given that a dividend is issued.

Reference no: EM131927756

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