what is the probability that a client selected at random ownsboth bonds and stoc
ID: 2926876 • Letter: W
Question
what is the probability that a client selected at random ownsboth bonds and stock 1) Each year ratings are compiled concerning the performance of new ta collected, the probability that a new car needs a warranty repair is 4% and the probability a car is manufactured by an American based company is 60%. The data also reflects the probability that a new car needs a warranty repair and was manufactured by an American based company is 2.5%. The probability the car is manufactured outside the U.S. and needs a new car warranty repair is 3.25%. A car was selected at random. Suppose we know that the car selected was manufactured by a U. S. company, what is the probability that the car needs a warranty repair? 2) The U. S. Health Commission recommends to maintain good health adults need to eat at least 5 fruits or vegetables per day. The Commission has indicated that research shows adults on average eat 5.2 fruits or vegetables per day with a standard deviation of .4 fruits and vegetables per day. What percent of individuals are not meeting the U. S. Health Commission recommendation? 3) A stockbroker knows from past experience that the probability a client owns stock is 60%, owns mutual funds is 90%, and owns bonds is 50%. The probability that a client owns mutual funds if the client owns stocks is 75% and the probability a client owns bonds if the client owns stocks is 55% What is the probability that a client selected at random owns both bonds and stocks? Macaur 10/13/2017Explanation / Answer
3:
Let S shows the event that client own stock, M shows the event that client own mutual fund and B shows the event that clinet own bonds. So
P(S) = 0.60, P(M) = 0.90, P(B) = 0.50
and we have
P(M|S) = 0.75, P(B|S) = 0.55
The probability that clinet own both bonds and stocks is
P(B and S) = P(B|S)P(S) = 0.55 * 0.60 = 0.33
Hence, required probability is 33%.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.