A survey conducted by the Company of Philly found that in a sample of 189 large
ID: 3354650 • Letter: A
Question
A survey conducted by the Company of Philly found that in a sample of 189 large companies, 40 offered stock options to their board members as part of their non-cash compensation packages. For small- to mid-sized companies, 43 of the 180 surveyed indicated that they offer stock options as part of their noncash compensation packages to their board members. a. Based on the scenario, set up a contingency table. b. If a company is selected at random, what is the probability that the company offered stock options to their board members? c. If a randomly selected company is a large company, what is the probability that it offered stock options to their board members?
Explanation / Answer
(a)
(b) Probability that a company offerred stock options = 83/369 = 0.225
(c) P(company is a large company) = 189/369
P(Company gives stock options) = 83/369.
Therefore P(company gives stock options/Company is a large company) = (83/369)/ (189/369) = 83/189 = 0.439
Big Companies Small to mid sized Total Gave Stocks 40 43 83 Did not give Stocks 149 137 286 Total 189 180 369Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.