Question

100 Points! Geometry question. Photo attached. Please show as much work as possible. Thank you!

Answer 1

See explanation

Explanation:

A: 50% * 85% = 42.5%

B: 50% * 15% = 7.5%

C: Dependent, because the stock price has a 0% chance of doubling if the GDA does not approve of the medicine.

Answer 2

Answer: 42.5%, 7.5%, Independent and Dependent

Explanation:

A: The chance that both FDA will approve and double the value is 50%*85% or 0.50*0.85, or 85*1/2 which is 42.5%

B: 50%*(100-85)%=50%*15%=15%*1/2=7.5%

C: FDA approval is independent because nothing can effect it. However, the stock doubling is dependent, because if FDA does not approve, it will definitely not double.