Solved

An Investment Firm Has Classified Its Clients According to Their

Question 9

Short Answer

An investment firm has classified its clients according to their gender and the composition of their investment portfolios (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 0.180.200.25 Female 0.120.100.15\begin{array} { | l | c | c | c | } \hline \text { Gender } & \text { Bonds } & \text { Stocks } & \text { Balanced } \\\hline \text { Male } & 0.18 & 0.20 & 0.25 \\\hline \text { Female } & 0.12 & 0.10 & 0.15 \\\hline\end{array} One client is selected at random, and two events A and B are defined as follows:
A: The client selected is male.
B: The client selected has a balanced portfolio.
Find the following probabilities. a. P(AB)\quad P ( A \cup B ) .
b. P(AB)P ( A \cap B ) .
c. P(ABˉ)P ( A \cap \bar { B } ) .
d. P(AˉBˉ)\quad P ( \bar { A } \cup \bar { B } ) .

Correct Answer:

verifed

Verified

a. 0.78.
b...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions