Question

1. A brokerage house studies various companies and rates each company’s stock as being either “low risk” (L) or “high risk” (H). In a recent report, the brokerage house summarized its findings that 6 out of 15 aerospace companies are “low risk” and 10 out of 25 food retailers are “high risk” companies.

1. Construct a contingency table
2. If we select one from these companies, find the probability that the
   1. Company is a food retailer   
   2. Company’s stock is low risk
   3. Company’s stock is high risk   

Company is a aerospace and has a stock that is low risk

Answer 1