Answer:
a. 7% probability that the selected individual owns shares in the balanced fund.
b. 31% probability that the individual owns shares in a bond fund.
c. 58% probability that the selected individual does not own shares in a stock fund
Step-by-step explanation:
a. What is the probability that the selected individual owns shares in the balanced fund?
7% of the individuals owns shares in the balanced fund, so 7% probability that the selected individual owns shares in the balanced fund.
b. What is the probability that the individual owns shares in a bond fund?
Bond funds (short, intermediate, and long-term):
15%(short-term) + 11%(intermediate-term) + 5%(long-term)
15%+11%+5% = 31%
31% probability that the individual owns shares in a bond fund.
c. What is the probability that the selected individual does not own shares in a stock fund?
Anything but moderate and high risk stock%.
The sum of all probabilities is 100%.
18% + 24% = 42% own stock fund.
100 - 42 = 58%
58% probability that the selected individual does not own shares in a stock fund
