Quantitative Methods Q148

148The odds for a company’s share price to fall below $45 are 1 to 5. The probability of the event occurring is closest to:

Option : A
Explanation : The probability of an event occurring given the odds for it is calculated as follows: Probability of E given odds of a to b = a / (a+b) = 1 / (1+5) ≈ 0.17.

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