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FDA approves and stock doubles |
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FDA approves and stock does not double | |||
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| FDA does not approves and stock doubles | |||||||
| FDA does not approves and stock does not double |
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FDA approves and stock doubles |
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FDA approves and stock does not double | |||
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| FDA does not approves and stock doubles | |||||||
| FDA does not approves and stock does not double |
There are four outcomes listed on the right, and the event that the stock doubled consists of two of those outcomes (in blue). By the principles of probability, the probability of the desired event is the sum of these outcomes: 0.48 + 0.10 = 0.58 (Choice E).
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