A study on firm riskiness over a certain period found the following results: Firm riskiness Firm Failure Failed (F1) Non-Failed (F2) Risky (R1) 162 6,263 Less risky (R2) 870 18,748

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter9: Counting And Probability
Section9.2: Probability
Problem 39E: Spinner A and B shown in the figure are spun at the same time. (a) Are the events "spinner A stops...
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  1. A study on firm riskiness over a certain period found the following results:

Firm riskiness

Firm Failure

Failed (F1)

Non-Failed (F2)

Risky (R1)

162

6,263

Less risky (R2)

870

18,748

 

  • What is the probability of randomly selecting a risky firm, less risky firm, failed firm, and non-failed firm? 
  • What is the probability of randomly selecting a risky firm and a failed firm?                                                                                                       
  • What is the probability of randomly selecting a firm that is either a risky firm or a failed firm?                                              
  • What is the probability of randomly selecting a non-failed firm, given it is risky?

                                              

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