Question

it is estimated 28% of all adults in united states invest in stocks and that 86% of u.s. adults have investments in fixed income instruments (savings accounts, bonds, etc.). it is also estimated that 25% of u.s. adults have investments in both stocks and fixed income instruments. (a)what is the probability that a randomly chosen u.s. adult invests in stocks, given that he or she invests in fixed income instruments? round your answer to the nearest hundredth. (b)what is the probability that a randomly chosen stock investor also invests in fixed income instruments? round your answer to the nearest hundredth.

Answer 1

(a) The probability that a randomly chosen u.s. adult invests in stocks is 0.89 (b) The likelihood that a stock investor picked at random also invests in fixed income securities is 0.29.

The area of mathematics known as chance theory is concerned with numerical representations of the likelihood that an event will occur or that a statement is true. The probability of an event is a number between 0 and 1, where, roughly speaking, 0 indicates that the event is impossible and 1 indicates certainty. With increasing probability, an event has a higher chance of happening. A straightforward demonstration is tossing a fair (impartial) coin. The probability of both outcomes, "heads" and "tails," are equal because there are no other possible outcomes and the coin is fair. Therefore, there is a 50% chance that any scenario will occur.

These are conditional probability-related queries.

In symbols: P(A|B)=P(A&B)/P(B)

P(S)=0.28

P(F)=0.86

P(F&S)=0.25

P(F|S)=0.25/0.28=0.89

P(S|F)=0.25/0.86=0.29

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