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A stock market analyst examined the prospects of the shares of a large number of corporations. When the performance of these stocks was investigated one year later, it turned out that 25% performed much better than the market average, 25%, much worse, and the remaining 50%, about the same as the average. Forty percent of the stocks that turned out to do much better than the market were rated good buys by the analyst, as were 20% of those that did about as well as the market and 10% of those that did much worse. What is the probability that a stock rated a good buy by the analyst performed much better than the average?

A stock market analyst examined the prospects of the shares of a large number of corporations. When the performance of these stocks was investigated one year later, it turned out that 25% performed much better than the market average, 25%, much worse, and the remaining 50%, about the same as the average. Forty percent of the stocks that turned out to do much better than the market were rated good buys by the analyst, as were 20% of those that did about as well as the market and 10% of those that did much worse. What is the probability that a stock rated a good buy by the analyst performed much better than the average?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 27PPS
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A stock market analyst examined the prospects of the shares of a large number of corporations. When the performance of these stocks was investigated one year later, it turned out that 25% performed much better than the market average, 25%, much worse, and the remaining 50%, about the same as the average. Forty percent of the stocks that turned out to do much better than the market were rated good buys by the analyst, as were 20% of those that did about as well as the market and 10% of those that did much worse. What is the probability that a stock rated a good buy by the analyst performed much better than the average?

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