It is estimated 28% of all adults in United States invest in stocks and that 87%

Question

It is estimated 28% of all adults in United States invest in stocks and that 87% of U.S. adults have investments in fixed income instruments (savings accounts, bonds, etc.). It is also estimated that 24% of U.S. adults have investments in both stocks and fixed income instruments. (a) What is the probability that a randomly chosen U.S. adult invests in stocks, given that s/he invests in fixed income instruments? Round your answer to 2 decimal places. domly cho income instruments? Round your answer to 2 decimal places. (If necessary, consult a list of formulas.) (a) D (b) D Clear Undo Help

Explanation / Answer

P(invest in stocks) = 0.28

P(invest in fixed income) = 0.87

P(invest in both) = 0.24

a) P(invest in stocks | invested in fixed income) = P(invest in both) / P(invest in fixed income) = 0.24 / 0.87 = 0.28

b) P(invested in fixed income | invested in stocks) = P(invest in both) / P(invest in stocks) = 0.24 / 0.28 = 0.86

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