Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Questions 34-38 are based on the following information: Max Sandlin is exploring

ID: 3061096 • Letter: Q

Question

Questions 34-38 are based on the following information: Max Sandlin is exploring the characteristics of stock market investors. He found that sixty percent of all investors have a net worth exceeding $1,000,000, 20% of all investors use an online brokerage; and 10% of all investors a have net worth exceeding $1,000,000 and use an online brokerage. 34. If an investor is selected randomly, and E is the event "networth exceeds $1,000,000," then PE)-- B. 0.10 C. 0.60 D. 0.20 35. An investor is selected randomly, and E is the event "networth exceeds $1,000,000" and O is the event "uses an online brokerage. Joint probability B. 0.10 C. 0.60 D. 0.20 6 An investor is selected randomly, and E is the event "networth exceeds $1,000,000," and O is the event "uses an online brokerageUnion probability PIO U E) = B. 0.50 C. 0.80 D. 0.70 An investor is selected randomly, and E is the event "networth exceeds 1,000,000," and O is the event "uses an online brokerage. Conditional B. 0.50 C. 0.80 D. 0.70 38. An investor is selected randomly, and E is the event "networth exceeds 1,000,000," and O is the event "uses an online brokerage. Conditional probability PE 10)- B. 0.50 C. 0.80 D. 0.70

Explanation / Answer

34) P(E) = 0.6

Option-C) 0.6

35) P(E O) = 0.1

Option-B) 0.1

36) P(O U E) = P(O) + P(E) - P(E O) = 0.2 + 0.6 - 0.1 = 0.7

Option-D) 0.7

37) P(O | E) = P(O E) / P(E) = 0.1 / 0.6 = 0.17

Option-A) 0.17

38) P(E | O) = P(E O) / P(O) = 0.1 / 0.2 = 0.5

Option-B) 0.5