An investment analyst collects data on stock and notes whether or not dividends were paid and whether or not the stocks increased in price over a given period. Data are presented in the following table.                                            price increase                  No Price increase         Total                           Dividends paid                          34                                        78                        112                                             No Dividends paid                    85                                        49                        134                                       Total                                        119                                      127                        246                                        Required: If a stock is selected out of the analysts list of 246 stocks, what is the probability that it increased in price If a stock is selected at random, what is the probability that it paid dividends If a stock is randomly selected, what is the probability that it both increased in price and paid dividends

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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  1. An investment analyst collects data on stock and notes whether or not dividends were paid and whether or not the stocks increased in price over a given period. Data are presented in the following table. 

                                          price increase                  No Price increase         Total                          

Dividends paid                          34                                        78                        112                                            

No Dividends paid                    85                                        49                        134                                      

Total                                        119                                      127                        246                                       

Required:

  1. If a stock is selected out of the analysts list of 246 stocks, what is the probability that it increased in price
  2. If a stock is selected at random, what is the probability that it paid dividends
  3. If a stock is randomly selected, what is the probability that it both increased in price and paid dividends
  4. What is the probability that a randomly selected stock neither paid dividends nor increased in price
  5. Given that a stock increased in price, what is the probability that it also paid dividends
  6. If a stock is known not to have paid dividends, what is the probability that it increased in price
  7. What is the probability that a randomly selected stock was worth holding during the period in question: That is, what is the probability that it increased in price or paid dividends or did both

 

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