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Options
- A
Boom 25%, Recession 15%
- B
Boom 16.5%, Recession 25%
- C
Boom 15%, Recession 5%
-
Boom 20%, Recession 10%
Correct answer
Why this is the answer
Let the probability of Recession be x. The probability of Boom is 2×x. The total probability sums to 100%, with Normal at 70%. Set up the equation: 70 + x + 2x = 100 → 3x = 30 → x = 10%. Recession = 10%, Boom = 2×10% = 20%.
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