For high school students, college admissions to the nation's most selective universities is very competitive. For example,
Question:
For high school students, college admissions to the nation's most selective universities is very competitive. For example, it was reported in 2007 that elite school A accepted about 12% (.12) of its applicants, and elite school B accepted 18% (.18). Joanna has applied to both schools. Assuming that she is a typical applicant, she figures that her chances of getting into both A and B must be about 2.16% (.0216).
a. How did she arrive at this conclusion?
b. What additional assumption is she making?
c. Do you agree with her conclusion?
d. Suppose the conditional probability of getting into B, given you are already accepted into A, is .82.
Now what is the probability of getting into both A and B?
International Money and Finance
ISBN: 978-0123852472
8th edition
Authors: Michael Melvin, Stefan C. Norrbin