Check my work Exercise 4.19 (Algo) 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 33 aerospace companies and 63 food retailers in the following table: Company Type Low Risk Moderate to High Risk Aerospace company 16 17 Food retailer 25 38 If we randomly select one of the total of 96 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 0.4000
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Step 1: The probability that the company's stock is moderate to high risk given that the firm is an aerospace company is the number of aerospace companies with moderate to high risk divided by the total number of aerospace companies. Show more…
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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.
David N.
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 33 aerospace companies and 42 food retailers in the following table: Company Type Low Risk Moderate to High Risk Aerospace company 17 16 Food retailer 18 24 If we randomly select one of the total of 75 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.) (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.) (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.)
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