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In a survey of 200 employees of a company regarding their 401(k) investments, th

ID: 3174990 • Letter: I

Question

In a survey of 200 employees of a company regarding their 401(k) investments, the following data were obtained. 139 had investments in stock funds. 90 had investments in bond funds. 58 had investments in money market funds. 47 had investments in stock funds and bond funds. 35 had investments in stock funds and money market funds. 36 had investments in bond funds and money market funds. 23 had investments in stock funds, bond funds, and money market funds. (a) What is the probability that an employee of the company chosen at random had investments in exactly two kinds of investment funds? (Enter your answer to three decimal places.) 0.245 (b) What is the probability that an employee of the company chosen at random had investments in exactly one kind of investment fund? (Enter your answer to two decimal places.) (c) What is the probability that an employee of the company chosen at random had no investment in any of the three types of funds? (Enter your answer to three decimal places.)

Explanation / Answer

a) Number of people with exactly 2 investemnets = Number of people with investemnets in stock and bond only + Number of people with investemnets in stock and money market only + Number of people with investemnets in bond and money market only

                                                                             = (47-23) + (35-23) + (36-23)

                                                                             = 49

Probaility = 49/200 = 0.245 (ans)

b) Number of people with investemnets in stock - 47 - 35 + 23 = 80

Number of people with investemnets in bond - 47 - 36 + 23 = 30

Number of people with investemnets in money market - 35 - 36 + 23 = 10

Probability = (80 + 30 + 10) / 200 = 0.6 (ans)

c) number of people with atleast one investements = 139 + 90 + 58 - 47 - 35 - 36 + 23 = 192

Number of people wit no investements = 200 - 192 = 8

Probability = 8/200 = 0.04 (ans)

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