A finance journal published a study of whether the decision to invest in the sto

Question

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 155, 354 adults living in Finland formed the 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 155, 354 selected at random. Complete parts a through f. Click the icon to view the Finnish investment and IQ data. 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 invest in the stock market? The probability is (Round to the nearest thousandth as needed.) f. Are the events (invest in the stock market) and {IQ score of 1} mutually exclusive? A. Yes, they are mutually exclusive because there are Finnish citizens who invest in the stock market and have an IQ score of 1. B. No, they are not mutually exclusive because there are Finnish citizens who invest in the stock market and have an IQ score of 1. C. Yes, they are mutually exclusive because there are no Finnish citizens who invest in the stock market and have an IQ score of 1. D. No, they are not mutually exclusive because the probability that a Finnish citizen invests in the stock market and has an IQ score of 1 is very small.

Explanation / Answer

a) probability =43775/155354 =0.282

b) probability =(31041+17200+12731+9165)/155354=0.451

c)probability =(10470+6087+5265+4336)/155354=0.168

d)=(43775+20571+11113+7466+4829)/155354=0.565

e) probability =(111579)/155354=0.718

f)option B is correct

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