The availability of venture capital provided a big boost in funds available to companies in recent years. According to Venture Economics (Investor’s Business Daily, April 28, 2000), 2374 venture capital disbursements were made in 1999. Of these, 1434 were to companies in California, 390 were to companies in Massachusetts, 217 were to companies in New York, and 112 were to companies in Colorado. Twenty-two percent of the companies receiving funds were in the early stages of development and 55% of the companies were in an expansion stage. Suppose you want to randomly choose one of these companies to learn about how they used the funds.
a. What is the probability the company chosen will be from California?
b. What is the probability the company chosen will not be from one of the four states mentioned?
c. What is the probability the company will not be in the early stages of development?
d. Assuming the companies in the early stages of development were evenly distributed across the country, how many Massachusetts companies receiving venture capital funds were in their early stages of development?
e. The total amount of funds invested was $32.4 billion. Estimate the amount that went to Colorado.