A recent survey reported in BusinessWeek dealt with the salaries of CEOs at larg

Question

A recent survey reported in BusinessWeek dealt with the salaries of CEOs at large corporations and whether company shareholders made money or lost money.

The CEO made more than $1 million or the shareholders lost money. (Round your answer to 2 decimal places.)

The CEO made more than $1 million given the shareholders lost money. (Round your answer to 4 decimal places.)

Select two CEOs and find that they both made more than $1 million. (Round your answer to 4 decimal places.)

CEO Paid
More Than
$1 Million CEO Paid
Less Than
$1 Million Total   Shareholders made money 1 12         13           Shareholders lost money 6 4         10                   Total 7 16         23           

Explanation / Answer

a. P (The CEO made more than $1 million) = 7/23 = 0.30

b. P (The CEO made more than $1 million or the shareholders lost money) = P(The CEO made more than $1 million) + P (The shareholders lost money) - P (The CEO made more than $1 million and the shareholders lost money) = 7/23 + 10/23 - 6/23 = 11/23 = 0.48

c. P (The CEO made more than $1 million given the shareholders lost money) = 6/10 = 0.6

d. P (Two CEOs made more than $1 million) = P (First CEO made more than $1 million) x P (Second CEO made more than $1 million) = 7/23 x 6/22 = 0.0830

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