# Step by step calculations for probability

An airline is trying to determine whether the price of fuel will rise or fall in the future. They believe there is a 65% chance that the cost of fuel will fall. However, they are risk-averse and prefer to hire an analyst. The airline execs have found that when the price of fuel fell, the analyst correctly predicted the decrease in cost 90% of the time. When the price of fuel rose, the analyst correctly predicted the increase 75% of the time. The execs hired the analyst and he issued a report predicting that the cost of fuel would fall. What is the probability the price of fuel will fall given this prediction. Round to the answer to 2 decimal places.

a) .65

b) .68

c) .74

d) .87

https://brainmass.com/statistics/probability/probability-193683

#### Solution Summary

This solution provides calculations for probability.

$2.19