Homework SourseA mutual fund company offers its customers several different
A mutual fund company offers its customers several different funds: a money market fund, three different bond funds, two stock funds, and a balanced fund. Among customers who own shares in just one fund, the percentages of customers in the different funds are as follows:
A customer who owns shares in just one fund is to be selected at random.
(a) What is the probability that the selected individual owns shares in the balanced fund?
(b) What is the probability that the individual owns shares in a bond fund?
(c) What is the probability that the selected individual does not own shares in a stock fund?
| Money market | 21% |
| Short-term bond | 15% |
| Intermediate-term bond | 10% |
| Long-term bond | 5% |
| High-risk stock | 17% |
| Moderate-risk stock | 25% |
| Balanced fund | 7% |
Solution
the probability that the selected individual owns shares is in the balanced is 7/100 = 0.07
the probability that the selected individual owns shares is in the bond fund is (15/100)+(10/100)+(5/100) = 0.30
the probability that the secelected individual owns shares is in the stock fund is (17/100) + (25/100) = 0.42
the probability that the secelected individual does not own shares in a stock fund is = 1 - 0.42 = 0.58
