some of Colossal Conglomerate\'s 40,000 clients are \"gold class\" clients, and
ID: 3142228 • Letter: S
Question
some of Colossal Conglomerate's 40,000 clients are "gold class" clients, and others are "platinum class" clients. Here is a contingency table showing the number of clients in various categories:
Assume a Colossal Conglomerate client is chosen at random. Calculate the following:
(Note: You can enter all answers as fractions.)
You have invested in Home-Clone Inc. stocks, as the FDA is close to a decision as to whether to approve the company's "Clone-a-Sibling" kit. There is a 50% chance of FDA approval, a 10% chance that the stock will double, and an 80% chance that the value of the stock will double if FDA approval is given.
Gold Class Platinum Class Total Small Business 1000 3000 4000 Large Company 4000 1000 5000 Individual 11,000 20,000 31,000 Total 16,000 24,000 40,000
Explanation / Answer
Formula to find probability = Number of favourable outcomes /
Here the total number of clients = 40,000
Number of Platinum class clients of a large company = 1000
The probability of choosing a large client from platinum class = 1000/40000= 1/40 = 0.025
Probability of choosing a large client of platinum class = 0.025
Now
The number of individual gold class clients = 11,000
The probability of chosing a gold class client = 11,000/40,000 = 11/40 = 0.275
Probability of choosing an individual gold class client = 0.275
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