Question

Please solve the following question.

Answer 1

The company type and risk level are not independent events

Probability of moderate to high risk given that firm is aerospace

This is calculated using:

P(Moderate to High risk | Aerospace) = n(Moderate to High risk and Aerospace)/n(Aerospace)

Using the table of values, we have:

P(Moderate to High risk | Aerospace) = 15/(23+15)

Evaluate

P(Moderate to High risk | Aerospace) = 0.3947

Hence, the probability is 0.3947

Probability of moderate to high risk given that firm is Food retailer

This is calculated using:

P(Moderate to High risk | Food retailer) = n(Moderate to High risk and Food retailer)/n(Food retailer)

Using the table of values, we have:

P(Moderate to High risk | Food retailer= 16/(18+16)

Evaluate

P(Moderate to High risk | Food retailer= 0.4706

Hence, the probability is 0.4706

Determine if the company type and risk level are independent

Using the table of values, we have:

P(Aero | Low) = 23/(23 + 18)

P(Aero | Low) = 0.5610

And, we have:

P(Aero) = 23/(23 + 15 + 18 + 16)

P(Aero) = 0.3194

Both probabilities are not equal

Hence, the company type and risk level are not independent

Read more about probability at:

brainly.com/question/251701

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