A financial planner has three portfolios: A, B, and C. Because investors have different tolerances for risks, 20% of people are likely to invest in portfolio A, 30% more likely to invest in B, and 50% more likely to invest in C. Each portfolio has both stocks and bonds, and investors are equally likely to choose either. This is a tree diagram that represents the probability of investors choosing the different financial products. What is the value
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A financial planner has three portfolios: A, B, and C. Because investors have different tolerances for risks, 20% of people are likely to invest in portfolio A, 30% more likely to invest in B, and 50% more likely to invest in C. Each portfolio has both stocks and bonds, and investors are equally likely to choose either.
This is a tree diagram that represents the probability of investors choosing the different financial products.
What is the value of Z?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
