00:01
In this problem it is given that from past experience stockbroker believes that under present economic condition, a customer will invest in tax -free bonds with a probability of 0 .6 will invest in mutual funds with a probability of 0 .25 and will invest in either tax -free bonds or mutual funds with a probability of 0 .7.
00:22
First of all, let a denote the event.
00:31
That a customer will invest in tax -free bonds and let b denote the event that a customer will in mutual funds.
01:20
So given that, probability of a is 0 .6, probability of p .a.
01:29
And p .a intersection b is 0 .7.
01:36
Now in a part we have to find p probability of a intersection b dash.
01:44
Okay, so this is pa minus p a intersection b.
01:50
This is the formula.
01:51
So we have the value of p .a.
01:53
0 .6 minus 0 .7 is p .a intersection b.
01:57
So this is equals to minus 0 .1.
02:01
Now in b part we have probability of a union b.
02:07
So probability of a union b is probability of a plus probability of b minus p a intersection b.
02:18
So this is equals to 0 .6 plus 0 .25 minus 0 .7.
02:27
So this is equals to 0 .15...