Refer to The Journal of Finance (December 2011) study of whether the decision to invest in the
Question:
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.
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.
Step by Step Answer:
Statistics For Business And Economics
ISBN: 9780134506593
13th Edition
Authors: James T. McClave, P. George Benson, Terry Sincich