Maria sees the growth of her business for the upcoming year as being tied to the gross domestic product (GDP). She believes that her business will grow (or contract) at the rate of 5%, 4.5%, 3%, 0%, or - 0.5% per year if the GDP grows (or contracts) at the rate of between 2 and 2.5%, between 1.5 and 2%, between 1 and 1.5%, between 0 and 1%, and between - 1 and 0%, respectively.
Maria has decided to assign a probability of 0.11, 0.23, 0.43, 0.19, and 0.04, respectively, to each outcome. At what rate does Maria expect her business to grow next year? Give your answer to three decimal places, if necessary.
__________ %

Question

Quizplus · Accepted Answer

The Answer of Maria sees the growth of her business for the upcoming year as being tied to the gross domestic product (GDP). She believes that her business will grow (or contract) at the rate of 5%, 4.5%, 3%, 0%, or - 0.5% per year if the GDP grows (or contracts) at the rate of between 2 and 2.5%, between 1.5 and 2%, between 1 and 1.5%, between 0 and 1%, and between - 1 and 0%, respectively.
Maria has decided to assign a probability of 0.11, 0.23, 0.43, 0.19, and 0.04, respectively, to each outcome. At what rate does Maria expect her business to grow next year? Give your answer to three decimal places, if necessary.
__________ %

Maria Sees the Growth of Her Business for the Upcoming