Question

Among a group of 2,500 people, 35 percent invest in municipal bonds, 18 percent invest in oil stocks, and 7 percent invest in both municipal bonds and oil stocks. If 1 person is to be randomly selected from the 2,500 people, what is the probability that the person selected will be one who invests in municipal bonds but NOT in oil stocks

Answer 1

Answer:

Probability that the person selected will be one who invests in municipal bonds but not in oil stocks is  $\frac{7}{25}$

Explanation:

Given : Total no of people in the group = 2500

            Investors of municipal bonds = 35% i.e .35 × 2500 = 875

            Investors of both municipal bonds and oil stocks

         = 7% i.e .07 × 2500

         = 175

Hence, the investors who have invested in municipal bonds but not oil stocks = 875 - 175 = 700 investors

Probability that the person being selected will be one who invests in municipal bonds but not in oil stocks = $\frac{No.\ of\ investors\ of\ municipal\ bonds}{Total\ no\ of\ investors}$

= $\frac{700}{2500}$

=  $\frac{7}{25}$