Provide ALL steps, thank you~ Exercise 4.19 METHODS AND APPLICATIONS Each month

Question

Provide ALL steps, thank you~

Exercise 4.19 METHODS AND APPLICATIONS Each month a brokerage house studies various companies and rates each company's stock as being either low risk" or "moderate to high risk In a recent report, the brokerage house summarized its findings about 18 aerospace companies and 55 food retailers in the following table Company Type Low Risk Moderate to High Risk Aerospace company 10 Food retailer 25 30 If we randomly select one of the total of 73 companies (a) Find the probability that the company's stock is moderate to high risk given that the firm is an aerospace company. (Round your answer to 3 decimal places.) Probability (b) Find the probability that the company's stock is moderate to high risk given that the firm is a food retailer. (Round your answer to 3 decimal places.) Probability (c) Determine if the company type is independent of the level of risk of the firm's stock. (Round your answers to 3 decimal places.) Dependent. For two events to be independent, P (AeroILow)- P(Aero). P (Aero I Low) but the P (Aero) They are not equal

Explanation / Answer

a) 8/(8+10) 0.444444 0.444 b) 30/(30+25) 0.545455 0.545 c) P(Aero/Low) 0.285714 not equal to P(Aero) Not independent

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