# Question

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 15 aerospace companies and 25 food retailers in the following table:

. If we randomly select one of the total of 40 companies, find

a The probability that the company’s stock is moderate to high risk given that the firm is an aerospace company.

b. The probability that the company’s stock is moderate to high risk given that the firm is a. food retailer.

c. Determine if the events the firm is a food retailer and the firm’s stock is low risk are independent. Explain.

. If we randomly select one of the total of 40 companies, find

a The probability that the company’s stock is moderate to high risk given that the firm is an aerospace company.

b. The probability that the company’s stock is moderate to high risk given that the firm is a. food retailer.

c. Determine if the events the firm is a food retailer and the firm’s stock is low risk are independent. Explain.

## Answer to relevant Questions

John and Jane are married. The probability that John watches a certain television show is .4. The probability that Jane watches the show is .5. The probability that John watches the show, given that Jane does, is .7. a. ...In Exercise 4.24, find the proportion of employees who either have MBAs or are managers. In Exercise 4.24 Fifteen percent of the employees in a company have managerial positions, and 25 percent of the employees in the ...In Exercise 4.30, suppose that we wish to have a 99.73 percent chance that all 50 specifications will be met. If each specification will have the same chance of being met, how large must we make the probability of meeting ...A company administers an “aptitude test for managers” to aid in selecting new management trainees. Prior experience suggests that 60 percent of all applicants for management trainee positions would be successful if they ...Find the probabilities you found in Exercise 4.55 by assuming that for each stock P(R) =.6, P (U) =.1, and P (D) = .3, and assuming that the two stocks move independently. Base on The following situation: An investor holds ...Post your question

0