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

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The Journal of Finance (December 2011) published a study of whether the decision to invest in the stock market is dependent on IQ. Information on a sample of 158,044 adults living in Finland formed the database for the study. An IQ score (from a low score of 1 to a high score of 9) was determined for each Finnish citizen as well as whether or not the citizen invested in the stock market. The next table gives the number of Finnish citizens in each IQ score/investment category. Suppose one of the 158,044 citizens is selected at random.
a. What is the probability that the Finnish citizen invests in the stock market?
b. What is the probability that the Finnish citizen has an IQ score of 6 or higher?
c. What is the probability that the Finnish citizen invests in the stock market and has an IQ score of 6 or higher?
d. What is the probability that the Finnish citizen invests in the stock market or has an IQ score of 6 or higher?
e. What is the probability that the Finnish citizen does not invest in the stock market?
f. Are the events {Invest in the stock market} and {IQ score of 1} mutually exclusive?
The Journal of Finance (December 2011) published a study of
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Statistics For Business And Economics

ISBN: 9780321826237

12th Edition

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

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