Harry owns shares of stock in both Bidwell Value Company and Mini Car Motors,
Inc. Harry has recorded the performance of these shares on each day for a 200 day
period as to whether the price has risen, fallen, or remained unchanged. Harry’s
data is as follows:
Event Bidwell Mini Car # of days
E1 Rise Rise 40
E2 Rise Unchanged 14
E3 Rise Fall 20
E4 Unchanged Rise 18
E5 Unchanged Unchanged 12
E6 Unchanged Fall 14
E7 Fall Rise 28
E8 Fall Unchanged 16
E9 Fall Fall 38
a. What is the probability of a rise in Bidwell and a fall in Mini Car stock?
b. What is the probability of a rise in Bidwell or a fall in Mini Car stock?
c. Suppose Harry is told that Mini Car stock has fallen. What is the probability
that Bidwell stock has risen?
d. Are the events “a rise in Bidwell stock” and “a fall in Mini Car stock”
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