Answered

Join the IDNLearn.com community and start finding the answers you need today. Join our platform to receive prompt and accurate responses from experienced professionals in various fields.

Javier will be a senior next year in high school. To celebrate his graduation, his grandmother gave him a sizeable about of money. Since he has scholarships for college, Javier decided to investigate investing the money in stocks. He talked to a consultant, who explained some of her investment types and their returns as compared to the market average. Javier’s choices were to invest in high- or low-capital stock, below average or at or above average and domestic or international. Find the probability of the following situation: P(the stock performs below average|domestic)

Sagot :

MrRoyalidn

Probabilities are used to determine the chances of events.

The probability P(the stock performs below average|domestic) is 0.109

How to calculate the probability

Let A represent the number of stocks that performs below average

B represents the number of domestic stock

From the table, we have:

n(A n B) = 55 i.e. domestic stocks that performs below average

n(B) = 505 i.e. all domestic stocks

The probability is then calculated as:

[tex]P(A\ |\ B) = \frac{n(A\ n\ B)}{n(B)}[/tex]

This gives

[tex]P(A\ |\ B) = \frac{55}{505}[/tex]

[tex]P(A\ |\ B) = 0.109[/tex]

Hence, the probability P(the stock performs below average|domestic) is 0.109

Read more about probabilities at:

https://brainly.com/question/25870256

Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Your questions find clarity at IDNLearn.com. Thanks for stopping by, and come back for more dependable solutions.