# Question

An investment analyst collects data on stocks and notes whether or not dividends were paid and whether or not the stocks increased in price over a given period.

Data are presented in the following table.

a. If a stock is selected at random out of the analyst's list of 246 stocks, what is the probability that it increased in price?

b. If a stock is selected at random, what is the probability that it paid dividends?

c. If a stock is randomly selected, what is the probability that it both increased in price and paid dividends?

d. What is the probability that a randomly selected stock neither paid dividends nor increased in price?

e. Given that a stock increased in price, what is the probability that it also paid dividends?

f. If a stock is known not to have paid dividends, what is the probability that it increased in price?

g. What is the probability that a randomly selected stock was worth holding during the period in question; that is, what is the probability that it increased in price or paid dividends or did both?

Data are presented in the following table.

a. If a stock is selected at random out of the analyst's list of 246 stocks, what is the probability that it increased in price?

b. If a stock is selected at random, what is the probability that it paid dividends?

c. If a stock is randomly selected, what is the probability that it both increased in price and paid dividends?

d. What is the probability that a randomly selected stock neither paid dividends nor increased in price?

e. Given that a stock increased in price, what is the probability that it also paid dividends?

f. If a stock is known not to have paid dividends, what is the probability that it increased in price?

g. What is the probability that a randomly selected stock was worth holding during the period in question; that is, what is the probability that it increased in price or paid dividends or did both?

## Answer to relevant Questions

The following table lists the number of firms where the top executive officer made over $1 million per year. The table also lists firms according to whether shareholder return was positive during the period in question. a. ...Define the probability of an event. In problem 2-34, are the events "top executive made more than $1 million" and "shareholders lost money" independent of each other? If this is true for all firms, how would you interpret your finding? In a shipment of 14 computer parts, 3 are faulty and the remaining 11 are in working order. Three elements are randomly chosen out of the shipment. What is the probability that all three faulty elements will be the ones ...A chemical plant has an emergency alarm system. When an emergency situation exists, the alarm sounds with probability 0.95. When an emergency situation does not exist, the alarm system sounds with probability 0.02. A real ...Post your question

0