12. Use the following information and answer the next two questions:The Journal of Finance (December 2011) published a study of whether the decision to invest inthe stock market is dependent on IQ. Information on a sample of 158,044 adults living in Finlandformed the database for the study. An IQ score (from a low score of 1 to a high score of 9) wasdetermined for each Finnish citizen as well as whether or not the citizen invested in the stockmarket. The following table gives the number of Finnish citizens in each IQ score/investmentcategory. Suppose one of the citizens is selected at random. Answer the following questions:IQ Score1234567896TotalsInvest inMarket8931,3402,0095,3588,48410,2706,6985,1354,46444,651A. 0.209B. 0.371C. 0.317C. 0.629NoInvestment4,6599,4099,49319,68224,64021,67311,2607,0105,067113,393Totals5,55210,74912,00225,04033,12431,94317,95812,1459,531158,044Source: Based on M. Grinblatt, M. Keloharju, and J. Linnainaa,"IQ and Stock Market Participation," The Journal of Finance, Vol.66, No. 6, December 2011 (adapted from Table 1 and Figure 1).Given that the Finnish citizen has an IQ score of 6 or higher, what is the probability that he/sheinvests in the stock market? 13. Given that the Finnish citizen has an IQ score of 5 or lower, what is the probability that he/sheinvests in the stock market?A. 0.209B. 0.371C. 0.629C. 0.791

The total number of adults in the sample is 158,044.

12. Use the following information and answer the next two questions: The Journal of Finance (December 2011) published a study of whether the decision to invest in the stock market is dependent on IQ. Information on a sample of 158,044 adults living in Finland formed the database for the study. An IQ score (from a low score of 1 to a high score of 9) was determined for each Finnish citizen as well as whether or not the citizen invested in the stock market. The following table gives the number of Finnish citizens in each IQ score/investment category. Suppose one of the citizens is selected at random. Answer the following questions: IQ Score 1 576992445 3 5 8 Totals Invest in Market A. 0.209 B. 0.371 893 1,340 2,009 5,358 8,484 10,270 6,698 5,135 4,464 44,651 C. 0.317 C. 0.629 No Investment 4,659 9,409 9,593 19,682 24,640 21,673 11,260 7,010 5,067 113,393 Totals 5,552 10,749 12,002 25,040 33,124 31,943 Source: Based on M. Grinblatt, M. Keloharju, and J. Linnainaa, "IQ and Stock Market Participation," The Journal of Finance, Vol. 66, No. 6, December 2011 (adapted from Table 1 and Figure 1). 17,958 12,145 9,531 158,044 Given that the Finnish citizen has an IQ score of 6 or higher, what is the probability that he/she invests in the stock market?

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...