Business, 27.03.2020 05:12 ayoismeisalex

As part of his yearly financial planning, Stefen is thinking of investing $1,000 in a certain stock. From past data he knows that this stock either grows to $2,000 in one year (with the probability of 0.40) or goes down to $700 (with 0.60 probability). There is a mobile app that charges him for predicting whether the stock goes up or down. From customer reviews he has noticed that the app has predicted growth for 65% of the stocks that have actually grown. The app also accurately predicted shrinking of 90% of the stocks whose price actually went down. What is the maximum he should pay for the app (EVSI)

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As part of his yearly financial planning, Stefen is thinking of investing $1,000 in a certain stock....

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