Each month a brokerage house studies various companies and rates each company’s

Question

Each month a brokerage house studies various companies and rates each company’s stock as being either “low risk” or “moderate to high risk.” In a recent report, the brokerage house summarized its findings about 28 aerospace companies and 17 food retailers in the following table:

  
If we randomly select one of the total of 45 companies

(a) Find the probability that the company's stock is moderate to high risk given that the firm is an aerospace company. (Round your answer to 4 decimal places.)

Probability        

(b) Find the probability that the company's stock is moderate to high risk given that the firm is a food retailer. (Round your answer to 4 decimal places.)

Probability          

  
(c) Determine if the company type is independent of the level of risk of the firm's stock. (Round your answers to 4 decimal places.)

Dependent. For two events to be independent, P(Aero | Low) = P(Aero). P(Aero | Low) =  but the P(Aero) = . They are not equal.

Company Type Low Risk Moderate to High Risk Aerospace company 12 16 Food retailer 14 3

Explanation / Answer

a)   probability that the company's stock is moderate to high risk given that the firm is an aerospace company

=16/28 =0.5714

b)probability that the company's stock is moderate to high risk given that the firm is a food retailer

=3/17 =0.1765

c)

please revert if you need help on this as ; you already sloved it for dependent

low risk moderate to high risk total aerospace 12 16 28 food retailer 14 3 17 total 26 19 45

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