Question

An investment advisor believes that there is a 30% chance of making money by investing in...

An investment advisor believes that there is a 30% chance of making money by investing in a specific stock. If the stock makes money, then there is a 52% chance that among those making money, they would also get a dividend. Find the probability that the investor makes money and receive a dividend.

15%
16%
30%
52%

Homework Answers

Answer #1

Let event = Making money by investing

Event = Receiving dividend

Not receiving the dividend

The probability of making money by investing =

Given that the stock makes money, the probability of receiving dividends

=

Hence,

The probability that the investor makes money and does not receive a dividend:

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