Share
Explore BrainMass

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

Solution Summary

This solution provides calculations for probability.

$2.19