.NEED ANSWER ASAP/ ANSWER THROUGHLY PLEASE a.) b.) c.) d.) A finance journal pub

Question

.NEED ANSWER ASAP/   ANSWER THROUGHLY PLEASE

a.)

b.)

c.)

d.)

A finance journal published a study of whether the decision to invest in the stock market is dependent on IQ. Information on a sample of 152,644 adults living in Finland formed te database for the study. An IQ score (from a low score of 1 to a high score of 9) was determined for each Finnish citizen as well as whether or not the citizen invested in the stock market The following table gives the number of Finnish citizens in each IQ score/investment category. Suppose one of the 152,644 citizens is selected at random. Complete parts a through f Click the icon to view the Finnish investment and IQ data Data Table a. What is the probability that the Finnish citizen invests in the stock market? The probability is(Round to the nearest thousandth as needed.) b. What is the probability that the Finnish citizen has an IQ score of 6 or higher? The probability is (Round to the nearest thousandth as needed.) c. What is the probability that the Finnish citizen invests in the stock market and has an IQ score of 6 or higher? The probability is (Round to the nearest thousandth as needed) d. What is the probability that the Finnish citizen invests in the stock market or has an IQ score of 6 or higher? The probability is (Round to the nearest thousandth as needed) e. What is the probability that the Finnish citizen does not nvest in the stock market? The probability is(Round to the nearest thousandth as needed.) Invest in Market IQ Score Totals 801 1,349 2058 5,328 8,064 10,123 6,087 5,266 4,509 43,585 Investment 4,607 8,992 9,290 18,208 23,789 20,684 11,299 7,132 5,058 109,059 5.408 10,341 11,348 23,536 31.853 30.807 17.386 12,398 9,567 152.644 Totals Print Done Click to select your answer(s). 2

Explanation / Answer

(a)

(i) Pr(Finnish citizen invest in market) = number of people who invests/ Total number of finish surveyed = 43585/152644 = 0.286

(ii) Pr(Finnish citizen has an IQ score of 6 or higher) = (30807 + 17386 + 12398 + 9567)/152644 = 0.460

(iii) Pr(Finish citizen invests in stock market and have IQ scores above 6)

= Total such number of people/ Total number of surveyed people

= (10123 + 6087 + 5266 + 4509)/152644 = 0.170

(iv) Pr(Finish citizen invest in stock market or has an IQ score of 6 or higher)

= Pr(Invest in stock market) + Pr(IQ score 6 or higher) - Pr(Finish citizen invests in stock market and have IQ scores above 6)

= 0.286 + 0.460 - 0.170

= 0.575

(e) Pr(Finnish citizen doesn't invest in stock market) = 109059/152644 = 0.714

Question 2

P(A) = 0.2 ; P(B) = 0.5 ; P(A l B) = 0.2

(i) P(A B) = P(B) * P(A l B) = 0.5 * 0.2 = 0.1

(ii) P(B l A) = P(A B) / P(A) = 0.1/0.2 = 0.5

Question 3

Pr(Doctr Distribute PMI sheets) = P(A) = 0.35

Pr(Receive PMI sheets and Hospitalized due to drug related problem) = Pr(A B) = 0.15

Pr(Hospitalised for drug related problem l Received PMI sheets) = Pr(B l A) = Pr(A B)/P(A) = 0.15/0.35 = 0.426

Question 4

Expected net winning E(x) = 1/23000000 * (4000000 - 1) + 22999999/23000000 * (-1) = -0.826

Your average loss for a large number of games would be -0.826 dollars.

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