Question: Question 2 (7 marks) Marks A researcher manages a portfolio of 250 common stocks. The table below classifies the stocks by 'Industry Sector' and 'Investment

 Question 2 (7 marks) Marks A researcher manages a portfolio of

250 common stocks. The table below classifies the stocks by 'Industry Sector'

Question 2 (7 marks) Marks A researcher manages a portfolio of 250 common stocks. The table below classifies the stocks by 'Industry Sector' and 'Investment Objective'. Investment Industry Sector Objective Electronics Airlines Healthcare Totals Growth 100 10 40 Income 20 20 60 Totals Use the contingency table to answer the following questions. a) If a stock is selected randomly, what is the probability that it will be classified under 'Healthcare'? [1] b) If a stock is selected randomly, what is the probability that it will be classified under 'Electronics' and 'Income'? [1] C) If a stock is selected randomly, what is the probability that it will be classified under both 'Electronics' and 'Airlines'? [2] d) If a randomly selected stock is classified under 'Income', what is the probability that the stock will also be classified under 'Healthcare'? [1] e) Are "Investment Objective" and "Industry Sector" independent? Justify your answer. [2]

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!