Refer to The Journal of Finance (December 2011) study of whether the decision to invest in the

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Refer to The Journal of Finance (December 2011) study of whether the decision to invest in the stock market is dependent on IQ, Exercise 3.46 (p. 158). The summary table giving the number of the 158,044 Finnish citizens in each IQ score/investment category is reproduced below. Again, suppose one of the citizens is selected at random.

IQ Score Invest in Market No Investment Totals 5,552 10,749 12,002 25,040 33,124 31,943 17,958 12,145 9,531 893 1,340 2,

a. Given that the Finnish citizen has an IQ score of 6 or higher, what is the probability that he/she invests in the stock market?
b. Given that the Finnish citizen has an IQ score of 5 or lower, what is the probability that he/she invests in the stock market?
c. Based on the results, parts a and b, does it appear that investing in the stock market is dependent on IQ?
Explain.

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Define the following events I Invests in Market N No investment a b c Yes it appears ...View the full answer

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Statistics For Business And Economics

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13th Edition

Authors: James T. McClave, P. George Benson, Terry Sincich

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Question Posted: Nov 22, 2017 07:02 AM

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Refer to The Journal of Finance (December 2011) study of whether the decision to invest in the

Question:

IQ Score Invest in Market No Investment Totals 5,552 10,749 12,002 25,040 33,124 31,943 17,958 12,145 9,531 893 1,340 2,009 4,659 9,409 9,993 19,682 24,640 21,673 11,260 7,010 5,067 3 5,358 8,484 10,270 6,698 5,135 4,464 Totals 44,651 113,393 158,044

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Define the following events I Invests in Market N No investment a b c Yes it appears ...View the full answer

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