Exhibit 4-7

question 78

Short Answer

Exhibit 4-7.An investor in Apple is worried the latest management earnings forecast is too aggressive and the company will fall short.His favorite analyst that covers Apple is going to release his report on Apple the week before the earnings announcement.Report stands for the analyst's report,and Forecast stands for the earnings announcement. Refer to Exhibit 4-7.What is the probability the earnings announcement is below the forecast?

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Definitions:

Close-Knit

Describes a group of individuals who share strong bonds and are tightly interconnected.

Shared Commitment

A mutual agreement or pledge among members of a group to pursue a common goal or adhere to a set of standards.

Joint Performance

Describes the collective output or results achieved by a team or group working together towards common goals.

Friendship Group

A social unit formed by individuals who share personal bonds, interests, or activities, often providing mutual support and companionship.