IQ Score Invest in Market No Investment Totals 1 880 4,682 5,562 2 1,3231 9,369
ID: 2926510 • Letter: I
Question
IQ Score
Invest in Market
No Investment
Totals
1
880
4,682
5,562
2
1,3231
9,369
10,692
3
2,088
9,561
11,649
4
5,330
19,659
24,989
5
8,097
24,546
32,643
6
10,293
21,714
32,007
7
6 ,949
11,181
18,130
8
5,032
6,960
11,992
9
4,554
5,019
9,573
Totals
44,546
112,691
157,237
A finance journal published a study of whether the decision to invest in the stock market is dependent on IQ. Information on a sample of 157,237 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 following table gives the number of Finnish citizens in each IQ score/investment category. Suppose one of the
157,237 citizens is selected at random. Complete parts a through f.
a. What is the probability that the Finnish citizen invests in the stock market?
The probability is _______
.
(Round to the nearest thousandth as needed.)
b. What is the probability that the Finnish citizen has an IQ score of 6 or higher?
The probability is _______
.
(Round to the nearest thousandth as needed.)
c. What is the probability that the Finnish citizen invests in the stock market and has an IQ score of 6 or higher?
The probability is ________
.
(Round to the nearest thousandth as needed.)
d. What is the probability that the Finnish citizen invests in the stock market or has an IQ score of 6 or higher?
The probability is _________
.
(Round to the nearest thousandth as needed.)
e. What is the probability that the Finnish citizen does not invest in the stock market?
The probability is _________
.
(Round to the nearest thousandth as needed.)
f. Are the events {Invest in the stock market} and {IQ score of 1} mutually exclusive?
A.
Yes, they are mutually exclusive because there are Finnish citizens who invest in the stock market and have an IQ score of 1.
B.
No, they are not mutually exclusive because there are Finnish citizens who invest in the stock market and have an IQ score of 1.
C.
Yes, they are mutually exclusive because there are no Finnish citizens who invest in the stock market and have an IQ score of 1.
D.
No, they are not mutually exclusive because the probability that a Finnish citizen invests in the stock market and has an IQ score of 1 is very small.
IQ Score
Invest in Market
No Investment
Totals
1
880
4,682
5,562
2
1,3231
9,369
10,692
3
2,088
9,561
11,649
4
5,330
19,659
24,989
5
8,097
24,546
32,643
6
10,293
21,714
32,007
7
6 ,949
11,181
18,130
8
5,032
6,960
11,992
9
4,554
5,019
9,573
Totals
44,546
112,691
157,237
Explanation / Answer
a)probability that the Finnish citizen invests in the stock market =44546/157237 =0.283
b)probability that the Finnish citizen has an IQ score of 6 or higher =(32007+18130+11992+9573)/157237
=0.456
c)probability that the Finnish citizen invests in the stock market and has an IQ score of 6 or higher
=(10293+6949+5032+4554)/157237 =0.171
d) probability that the Finnish citizen invests in the stock market or has an IQ score of 6 or higher
=(44546+21714+11181+6960+5019)/15237 =0.569
e)probability that the Finnish citizen does not invest in the stock market =112691/157237 =0.717
f)
No, they are not mutually exclusive because there are Finnish citizens who invest in the stock market and have an IQ score of 1.
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