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Physics, 18.10.2019 21:00 autumnguidry6867

Suppose that we wish to predict whether a given stock will issue a dividend this year ("yes" or "no") based on x, last year’s percent profit. we examine a large number of companies and discover that the mean value of x for companies that issued a dividend was x¯ = 10, while the mean for those that didn’t was x¯ = 0. in addition, the variance of x for these two sets of companies was σˆ 2 = 36. finally, 80% of companies issued dividends. assuming that x follows a normal distribution, predict the probability that a company will issue a dividend this year given that its percentage profit was x = 4 last year.

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