a b It is estimated of all adults in United States invest i

(a)

(b)

It is estimated % of all adults in United States invest in stocks and that % of U.S. adults have investments in fixed income instruments (savings accounts, bonds, etc.). It is also estimated that % 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 s/he invests in fixed income instruments? Round your answer to decimal places. (b) What is the probability that a randomly chosen stock investor also invests in fixed income instruments? Round your answer to decimal places. (If necessary, consult a list of formulas.) (a) (b)

Solution

It is estimated % of all adults in United States invest in stocks and that % of U.S. adults have investments in fixed income instruments (savings accounts, bonds, etc.). It is also estimated that % of U.S. adults have investments in both stocks and fixed income instruments.

Thus, P(Stoks+Investment)=0.26

P(S+I)=P(S)+P(I)-P(S and I)

0.26=0.30+0.83-P(S and I)

P(S and I)=0.30+0.83-0.26=0.9