An investment firm has classified its clients according to their gender and the

Question

An investment firm has classified its clients according to their gender and the composition of their investment portfolio (primarily bonds, primarily stocks, or a balanced mix of bonds and stocks). The proportions of clients falling into the various categories are shown in the following table:

                                                            Portfolio Composition

Gender

Bonds

Stocks

Balanced

Male

.18

.20

.25

Female

.12

.10

.15

One client is selected at random, and two events A and B are defined as follows;

Determine P(Balanced | Male).

0.3678

0.2567

0.3968

0.5

Gender

Bonds

Stocks

Balanced

Male

.18

.20

.25

Female

.12

.10

.15

Explanation / Answer

as total male portfolio=(0.18+0.20+0.25)=0.63 out of whcih balaned is 0.25.

hence P(Balanced | Male)=0.25/0.63=0.3968

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