Open EndRunGuide. pdf, the EndRun Financial Services “ Guide to Investing,” and read the information about the Guaranteed Investment Package ( GIP). Read the claims and examine the supporting data. Then answer the following questions:
1. How accurate is the claim of the probability of suc-cess for EndRun’s GIP? In what ways is the claim misleading? How would you calculate and state the prob-ability of having an annual rate of return not less than 15%?
2. Using the table found under the “ Show Me the Winning Probabilities” subhead, compute the proper probabilities for the group of investors. What mistake was made in re-porting the 7% probability claim?
3. Are there any probability calculations that would be appropriate for rating an investment service? Why or why not?