EBK BUSINESS STATISTICS
7th Edition
ISBN: 8220102743984
Author: STEPHAN
Publisher: PEARSON
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Chapter 4, Problem 4.37AC
a.
To determine
To find: The
b.
To determine
To find: The proportion of bonds that are issued by cities.
c.
To determine
To find: The proportion of bonds that are issued by suburbs.
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A municipal bond services has three rating categories (A,B,C). Suppose that in the past year, of the municipal bonds issues throughout the United States, 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.
If a new municipal bond is to be issued by a city, what is the probability that it will receive an A rating?
What proportion of municipal bonds are issued by cities?
3. What proportion of municipal bonds are issued by suburbs?
a municipal bond service has three rating categories (A, B, C) Suppose that in the past year, of the municipal bonds issued throughout the United states. 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. if the municipal bonds rated C 905 were issued by cities 5% by suburbs and 5% by rural areas
An insurance company offers four different deductible levels-none, low, medium, and high-for its homeowner's policyholders and three different levels-low, medium, and high-for its automobile policyholders. The accompanying table gives proportions for the various
categories of policyholders who have both types of insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is 0.07 (7% of all such individuals).
Homeowner's
H
N L M
0.04 0.07 0.05 0.01
0.07 0.08 0.20 0.13
0.02 0.03 0.15 0.15
Auto
L
M
H
Suppose an individual having both types of policies is randomly selected.
(a) What is the probability that the individual has a medium auto deductible and a high homeowner's deductible?
0.13
(b) What is the probability that the individual has a low auto deductible? A low homeowner's deductible?
auto deductible
0.17
homeowner's deductible
(c) What is the probability that the individual is in the same category for both auto and homeowner's…
Chapter 4 Solutions
EBK BUSINESS STATISTICS
Ch. 4 - Three coins are tossed. Give an example of a...Ch. 4 - An urn contains 12 red balls and 8 white balls....Ch. 4 - Consider the following contingency table: What is...Ch. 4 - Prob. 4.4LBCh. 4 - For each of the following, indicate whether the...Ch. 4 - For each of the following, state whether the...Ch. 4 - Which of the following events occur with a...Ch. 4 - Prob. 4.8ACCh. 4 - Referring to the contingency table in Problem 4.8,...Ch. 4 - Prob. 4.10AC
Ch. 4 - Referring to the contingency table in problem...Ch. 4 - What business and technical skills are critical...Ch. 4 - Prob. 4.13ACCh. 4 - Prob. 4.14ACCh. 4 - Prob. 4.15ACCh. 4 - Prob. 4.16LBCh. 4 - Prob. 4.17LBCh. 4 - Prob. 4.18LBCh. 4 - Prob. 4.19LBCh. 4 - Prob. 4.20LBCh. 4 - Prob. 4.21ACCh. 4 - Prob. 4.22ACCh. 4 - Prob. 4.23ACCh. 4 - Prob. 4.24ACCh. 4 - Prob. 4.25ACCh. 4 - Each year, ratings are compiled concerning the...Ch. 4 - Prob. 4.27ACCh. 4 - Prob. 4.28ACCh. 4 - Prob. 4.29ACCh. 4 - Prob. 4.30LBCh. 4 - Prob. 4.31LBCh. 4 - Prob. 4.32ACCh. 4 - A banking executive is studying the role of trust...Ch. 4 - Olive Construction Company is determining whether...Ch. 4 - According to a report by The Kauffman Foundation...Ch. 4 - Prob. 4.36ACCh. 4 - Prob. 4.37ACCh. 4 - Prob. 4.38ACCh. 4 - A lock on a bank vault consists of three dials,...Ch. 4 - If a coin is tossed seven times, how many...Ch. 4 - A particular brand of womens jeans is available in...Ch. 4 - Prob. 4.42ACCh. 4 - Prob. 4.43ACCh. 4 - Prob. 4.44ACCh. 4 - Prob. 4.45ACCh. 4 - Prob. 4.46ACCh. 4 - Prob. 4.47ACCh. 4 - Prob. 4.48ACCh. 4 - Prob. 4.49ACCh. 4 - Prob. 4.50ACCh. 4 - Prob. 4.51ACCh. 4 - Prob. 4.52CYUCh. 4 - Prob. 4.53CYUCh. 4 - Prob. 4.54CYUCh. 4 - What is the difference between mutually exclusive...Ch. 4 - Prob. 4.56CYUCh. 4 - Prob. 4.57CYUCh. 4 - Prob. 4.58CYUCh. 4 - Prob. 4.59CYUCh. 4 - Prob. 4.60CRPCh. 4 - Prob. 4.61CRPCh. 4 - Prob. 4.62CRPCh. 4 - Prob. 4.63CRPCh. 4 - Prob. 4.64CRPCh. 4 - A 2013 Sage North America survey examined the...
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