Determine the probability of a positive economic trend


Discuss the below:

Consider the following two economic characteristics with two possible outcomes each: employment (increase, decrease) and economic trend (positive, negative). Let the probability of a decreasing employment be 0.6 and the probability of a positive economic trend 0.5. Further, assume that the probability of a decreasing employment given a negative economic trend is 0.7.

Q: Determine the probability of a positive economic trend given an increasing employment. Are employment and economic trend independent?

 

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Basic Statistics: Determine the probability of a positive economic trend
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