Homework Help is Here – Start Your Trial Now!
Math
Probability
A municipal bond service has three rating categories (A, B, and C). Suppose that of the municipal bonds issued throughout the United States in the past year, 70% were rated A, 20% were rated B, and 10% were rated C. Of the municipal bonds rated A, 5 were issued by cities, 40% by suburbs, and 10% by rural areas. Of the municipal bonds rated B, 60% were issued by cities, 20 by suburbs, and 20% by rural areas. Of the municipal bonds rated C, 90% were issued by cities, 5% by suburbs, and 5% by rural areas. a. If a new municipal bond is to be issued by a city, what is the probability that it will receive an A rating? b. What proportion of municipal bonds are issued by cities? c. What proportion of municipal bonds are issued by suburbs?

A municipal bond service has three rating categories (A, B, and C). Suppose that of the municipal bonds issued throughout the United States in the past year, 70% were rated A, 20% were rated B, and 10% were rated C. Of the municipal bonds rated A, 5 were issued by cities, 40% by suburbs, and 10% by rural areas. Of the municipal bonds rated B, 60% were issued by cities, 20 by suburbs, and 20% by rural areas. Of the municipal bonds rated C, 90% were issued by cities, 5% by suburbs, and 5% by rural areas. a. If a new municipal bond is to be issued by a city, what is the probability that it will receive an A rating? b. What proportion of municipal bonds are issued by cities? c. What proportion of municipal bonds are issued by suburbs?

A First Course in Probability (10th Edition)
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...
See similar textbooks
icon
Related questions
Question
Is this correct? Am I looking at this correctly or should I use a ph stat formula?
Calibri (Body) - A A Aav Ao v12 AaBbCcDd AaBbCcDd AaBbC AABBCCC AaB AaB BIUV ab x, x A - er A v 三。 v出、 1 Normal 1 No Spac. Heading 1 Heading 2 Title Su baragranh Stules AutoSave On Homework 3 - Saved - O Search Lan Pratt File Home Insert Draw Page Layout Formulas Data Review View Help PHStat 11 - A A E Conditional Formatting Calibri General 密Insert Paste $ • % 9 Format as Table X Delete v BIU 三三州国 園 Z Cell Styles v EFormat v Clipboard Font Alignment Number Styles Cells G9 fr A В C F G H. J K A municipal bond service has three rating categories (A, B, and C). Suppose that of the municipal bonds issued throughout the United States in the past year, 70% were rated A, 20% were rated B, and 10% were rated C. Of the municipal bonds rated A, 50% were issued by cities, 40% by suburbs, and 10% by rural areas. Of the municipal bonds rated B, 60% were issued by cities, 20% by suburbs, and 20% by rural areas. Of the municipal bonds rated C, 90% were issued by cities, 5% by suburbs, and 5% by rural areas. 3 a. If a new municipal bond is to be issued by a city, what is the probability that it will receive an A rating? 4 b. What proportion of municipal bonds are issued by cities? 5 c. What proportion of municipal bonds are issued by suburbs? 50% 67% 22% 7 Cities subarbs rural 40% 10% 8 Rating A 9 Rating B 10 Rating C 11 12 70% 50% 20% 60% 20% 20% 10% 90% 5% 5% 200% 65% 35% 4.48 nuBasic Probabilities Sheet1 Sheet2 nuBasic Probabilities 4.48 Ready > > > WEO
Transcribed Image Text:Calibri (Body) - A A Aav Ao v12 AaBbCcDd AaBbCcDd AaBbC AABBCCC AaB AaB BIUV ab x, x A - er A v 三。 v出、 1 Normal 1 No Spac. Heading 1 Heading 2 Title Su baragranh Stules AutoSave On Homework 3 - Saved - O Search Lan Pratt File Home Insert Draw Page Layout Formulas Data Review View Help PHStat 11 - A A E Conditional Formatting Calibri General 密Insert Paste $ • % 9 Format as Table X Delete v BIU 三三州国 園 Z Cell Styles v EFormat v Clipboard Font Alignment Number Styles Cells G9 fr A В C F G H. J K A municipal bond service has three rating categories (A, B, and C). Suppose that of the municipal bonds issued throughout the United States in the past year, 70% were rated A, 20% were rated B, and 10% were rated C. Of the municipal bonds rated A, 50% were issued by cities, 40% by suburbs, and 10% by rural areas. Of the municipal bonds rated B, 60% were issued by cities, 20% by suburbs, and 20% by rural areas. Of the municipal bonds rated C, 90% were issued by cities, 5% by suburbs, and 5% by rural areas. 3 a. If a new municipal bond is to be issued by a city, what is the probability that it will receive an A rating? 4 b. What proportion of municipal bonds are issued by cities? 5 c. What proportion of municipal bonds are issued by suburbs? 50% 67% 22% 7 Cities subarbs rural 40% 10% 8 Rating A 9 Rating B 10 Rating C 11 12 70% 50% 20% 60% 20% 20% 10% 90% 5% 5% 200% 65% 35% 4.48 nuBasic Probabilities Sheet1 Sheet2 nuBasic Probabilities 4.48 Ready > > > WEO
QMB-500 Week 3 Homework - Saved - Search put References Mailings Review View Help A A Aa A 三、三、行 EE T AaBbCcDd AaBbCcDd AABBCC AABBCCC A aB AaBbCcD AaBbCcDc 1 Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em Paragraph Styles 4.48 A municipal bond service has three rating categories (A, B, and C). Suppose that of the municipal bonds issued throughout the United States in the past year, 70% were rated A, 20% were rated B, and 10% were rated C. Of the municipal bonds rated A, 5 were issued by cities, 40% by suburbs, and 10% by rural areas. Of the municipal bonds rated B, 60% were issued by cities, 20 by suburbs, and 20% by rural areas. Of the municipal bonds rated C, 90% were issued by cities, 5% by suburbs, and 5% by rural areas. a. If a new municipal bond is to be issued by a city, what is the probability that it will receive an A rating? b. What proportion of municipal bonds are issued by cities? c. What proportion of municipal bonds are issued by suburbs? 4.53
Transcribed Image Text:QMB-500 Week 3 Homework - Saved - Search put References Mailings Review View Help A A Aa A 三、三、行 EE T AaBbCcDd AaBbCcDd AABBCC AABBCCC A aB AaBbCcD AaBbCcDc 1 Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em Paragraph Styles 4.48 A municipal bond service has three rating categories (A, B, and C). Suppose that of the municipal bonds issued throughout the United States in the past year, 70% were rated A, 20% were rated B, and 10% were rated C. Of the municipal bonds rated A, 5 were issued by cities, 40% by suburbs, and 10% by rural areas. Of the municipal bonds rated B, 60% were issued by cities, 20 by suburbs, and 20% by rural areas. Of the municipal bonds rated C, 90% were issued by cities, 5% by suburbs, and 5% by rural areas. a. If a new municipal bond is to be issued by a city, what is the probability that it will receive an A rating? b. What proportion of municipal bonds are issued by cities? c. What proportion of municipal bonds are issued by suburbs? 4.53
Expert Solution
Step 1

Given:

A rated 70% of 100=70

B rated 20% of 100=20

C rated 20% of 100=20

From A, 50% for cities      >>50% of 70=35

From A, 40% for suburbs >>40% of 70=28

From A, 10% for rural      >>10% of 70=7

 

From B, 60% for cities      >>60% of 20=12

From B, 20% for suburbs >>20% of 20=4

From B, 20% for rural      >>20% of 20=4

 

From C, 90% for cities      >>90% of 10=9

From C, 5% for suburbs >>5% of 10=0.5

From C, 5% for rural      >>5% of 10=0.5

 

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Linear Equations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability
A First Course in Probability
Probability
ISBN:
9780321794772
Author:
Sheldon Ross
Publisher:
PEARSON
SEE MORE TEXTBOOKS