Bob, the Proprietor of Midland Lumber, Feels That the Odds

question 71

Short Answer

Bob, the proprietor of Midland Lumber, feels that the odds in favor of a business deal going through are 8 to 4. What is the (subjective) probability that this deal will not materialize? Give your answer to four decimal places, if necessary.
The probability is __________.

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Definitions:

Subsidiaries

Companies that are completely or partly owned and partly or wholly controlled by another company, known as the parent company.

Demand-Pull Inflation

occurs when prices rise because the demand for goods and services exceeds supply.

Price of Houses

The amount of money required to purchase residential properties, influenced by factors such as location, size, and market conditions.

Sharp Increase

A rapid and significant rise in a particular metric, such as price, volume, or value.