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 12 aerospace companies and 16 food retailers in the following table: Company Type Low Risk Moderate to High Risk Aerospace company 8 4 Food retailer 9 7 If we randomly select one of the total of 28 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 4 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 4 decimal places.) Probability
Added by Josefa S.
Close
Step 1
Given: - Total aerospace companies = 12 - Total moderate to high risk aerospace companies = 3 Probability = Total moderate to high risk aerospace companies / Total aerospace companies Probability = 3 / 12 Probability = 0.25 Show more…
Show all steps
Your feedback will help us improve your experience
David Nguyen and 71 other Intro Stats / AP Statistics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Each month, the 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 29 aerospace companies and 13 food retailers in the following table: Company Type Low Risk Moderate to High Risk Aerospace company 15 14 Food retailer 6 7 If we randomly select one of the total of 42 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 4 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 4 decimal places.) Probability
Madhur L.
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 40 aerospace companies and 58 food retailers in the following table: Company Type Low Risk Moderate to High Risk Aerospace company 25 15 Food retailer 42 16 If we randomly select one of the total of 98 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 4 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 4 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 4 decimal places.) Dependent. For two events to be independent, P(Aero | Low) = P(Aero). P(Aero | Low) = but the P(Aero) = . They are not equal.
Adi S.
A brokerage house studies companies and rates each company's stock as being either low or moderate risk. The brokerage house has summarized their findings about the number of companies that fall into two types of companies and two risk levels. Company Type: Manufacturing, Food Retailer Risk Level: Low Risk, Moderate Risk What is the probability that a company's stock is a low risk given that the firm is a Food Retailer company? 0.60 0.30 0.50 0.25 0.40
Recommended Textbooks
Elementary Statistics a Step by Step Approach
The Practice of Statistics for AP
Introductory Statistics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD