Contingency Table3 decimal places, rounded correctly, such as 0.250 or 0.367.The contingency table gives the results of a study concerning clients' risk levelsand preferences for different fund types at a brokerage firm.a) What is probability of a client with High Risk Level and is investing in a GrowthFund?b) If the risk level is low, what is probability of a Value Fund type?c) If the Fund Type is Value, what is probability of Average Risk Level?d) What is the probability of an Average Risk Level?Fund Type Fund TypeRisk Level GrowthValueTotalsLow1625Average19997High5416

If the probability of getting selected for each outcome is equal then such outcomes can be termed as…

Answered: The contingency table gives the results…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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What real-life scenarios/industries, in your opinion, must be making/make use of the probability theory/concepts? I want another answer instead of Probability theory concepts used in real life scenarios and industry a) weather planning b) Sports strategies c) Games a) weather planning : Weather forecasting can be done by saying 60 out of 100 days it has rained such that there is 60% chances of raining. b) Sports strategies : Sports strategies helps to estimate the spider man average performance and predicting to play his next match. c) Games : The probability strategies are used in poker , gambling , Rummy etc.
A rice importer has three sources: Thailand, Vietnam, and China. Unfortunately, the annual amount of rice harvested is heavily dependent upon the amount of rainfall during the growing season. The tables below show probabilities and prices for wet, dry, and normal growing seasons. Rice is sold in tons. PROBABILITIES Wet Dry Normal Thailand 0.5 0.2 0.3 Vietnam 0.6 0.3 0.1 China 0.4 0.4 0.2 Price per Pound ($) Wet Dry Normal Thailand 0.95 1.10 1.00 Vietnam 0.85 1.20 0.98 China 0.90 1.15 1.05 Which country offers the best rice price?
8. The criteria for ideally insurable losses include all of the following EXCEPT: a. Accidental or unintentional Losses. C. A small carefully defined group of exposures. d. A large number of risk exposures. e. low probability of catastrophic loss.
Indicate whether the statement is true or false, and justify your answer.All perceived probabilities are weighted lower than actual probabilities.
The less correlated the securities in a portfolio, Select one: O a the higher the diversifiable risk. O b. the higher the portfolio risk. O c. the lower the portfolio risk. Od the lower the unsystematic risk.
8. A raffle ticket costs $5. First- and second-prize winners will be drawn at random. The probability of winning the $100 fırst prize is 1/40, and the probability of winning the $25 second prize is 1/20. What is the mean winnings for one play, taking into account the $5 cost of the ticket? Hint: First find the probability model of a player's net gain, taking into account the $5 cost of the ticket. $3.375 O -$0.875 O $3.75 O $1.25
10. A bank classifies borrowers as high risk or low risk. Only 15% of its loans are made to those in the high-risk category. Of all its loans, 5% are in default, and 40% of those in default were made to high-risk borrowers. What is the probability that a high-risk borrower will default?
2. The following table shows the income distribution for two groups of people in a country: those who declare to belong to a faith, and those who declare to be free thinkers. Income bracket Middle 13278 2225 Religious outlook Faith believer Free thinker Lower 7940 1241 Upper 4527 813 (a) A person is randomly selected from the group, find the probability that this person is a (i) free thinker. (ii) free thinker given that he/she has middle income. (iii) faith believer or he/she has lower income. (b) Are the events "Free thinker" and "Middle income" independent? Explain your answer. (Note: Round the probabilities to two significant figures)
6. An actuary studying the insurance preferences of automobile owners makes the following conclusions: (i) An automobile owner is twice as likely to purchase collision coverage as disability coverage. (ii) The event that an automobile owner purchases collision coverage is independent of the event that he or she purchases disability coverage. (iii) The probability that an automobile owner purchases both collision and disability coverages is 0.15. (a)Calculate the probability that an automobile owner purchases neither collision nor disability coverage. (b) Calculate the probability that an automobile owner purchases only collision coverage.
5. A local bank reviewed its credit card policy with the intention of recalling some of its credit cards. It is known that 5% of cardholders will default, i.e., will miss three consecutive pay- ments. Management also knows that the chance of missing one monthly payment is 20% for customers who do not default. Of course, the probability of missing a monthly payment for those who default is 1. Answer the following questions: (a) (b) What is the probability that a customer will default, if he missed one (or more) payments? What is the probability of a customer missing one (or more) monthly payment? Hint: Define first suitable events

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