Reference no: EM13995712

Write probability statements relating hemline height, stock market prices, and "adven- turesomeness" that correspond to the following description of these relationships:

Another example is that high skirt hemlines tend to occur when the stock market is advancing steadily (a bull market), although no one believes that hemlines cause the stock market to advance, or vice versa. Perhaps both reflect a pervasive feeling of confidence and adventure in our society. If we had an adequate index of "societal adventuresomeness," hemline height and stock market activity might well be conditionally independent given the index. Even though we distinguish between continuous and discrete uncertain quantities in re- ality everything is discrete if only because of limitations inherent in our measuring de- vices. For example, we can only measure time or distance to a certain level of precision Why then, do we make the distinction between continuous and discrete uncertain quan- tities? What value is there in using continuous uncertain quantities in a decision model?