The Employee Benefit Research Institute (EBRI) issued a news release (“Saving in America: Three Key Sets of Figures”) on October 25, 2005. In 2005, about 69% of workers said they have saved for retirement. The file titled Retirement contains sample data similar to those used in this study.
a. Construct a frequency distribution of the total savings and investments using the intervals (1) Less than $25,000, (2) $25,000–$49,999, (3) $50,000–$99,999, (4) $100,000–$249,999, and (5) $250,000 or more.
b. Determine the probability that an individual who has saved for retirement has saved less than $50,000. Use relative frequencies.
c. Determine the probability that a randomly chosen individual has saved less than $50,000 toward retirement.
d. Calculate the probability that at least two of four individuals have saved less than $50,000 toward retirement.