1. A mutual fund company offers its clients several funds: a money market fund, three bond funds (short-term, intermediate-term, and long-term), two stock funds (moderate-risk and high-risk), and a balanced fund. The percentages of clients holding shares in a single fund are distributed among the different types of investment instruments as follows: PERCENTAGE TYPE Moderate risk stocks 25% Money market 20% High-risk stocks 18% Short-term bonds 15% Intermediate-term bonds 10% Balanced 7% Long-term bonds 5% TOTAL 100 % If a client is randomly selected who owns shares in only one fund: a) What is the probability that the selected client owns shares in the balanced fund? b) What is the probability that the same client owns shares in a bond fund? c) What is the probability that the same client does not own shares in a stock fund?

Brand: MathMaster
Rating: 4.9 (263 reviews)

263

likes

1314 views

Answer to a math question 1. A mutual fund company offers its clients several funds: a money market fund, three bond funds (short-term, intermediate-term, and long-term), two stock funds (moderate-risk and high-risk), and a balanced fund. The percentages of clients holding shares in a single fund are distributed among the different types of investment instruments as follows: PERCENTAGE TYPE Moderate risk stocks 25% Money market 20% High-risk stocks 18% Short-term bonds 15% Intermediate-term bonds 10% Balanced 7% Long-term bonds 5% TOTAL 100 % If a client is randomly selected who owns shares in only one fund: a) What is the probability that the selected client owns shares in the balanced fund? b) What is the probability that the same client owns shares in a bond fund? c) What is the probability that the same client does not own shares in a stock fund?

$Expert avatar$

Sigrid

4.5

119 Answers

a) To find the probability that the selected client owns shares in the balanced fund:

P(\text{Balanced fund}) = \frac{\text{Percentage of clients in balanced fund}}{\text{Total percentage}} = \frac{7}{100} = 0.07

b) To find the probability that the same client owns shares in a bond fund:

P(\text{Bond fund}) = P(\text{Short-term}) + P(\text{Intermediate-term}) + P(\text{Long-term}) = \frac{15 + 10 + 5}{100} = \frac{30}{100} = 0.30

c) To find the probability that the same client does not own shares in a stock fund:
First, find the probability of owning shares in a stock fund (both moderate and high-risk):

P(\text{Stock fund}) = P(\text{Moderate-risk stocks}) + P(\text{High-risk stocks}) = \frac{25 + 18}{100} = \frac{43}{100} = 0.43

Then, find the complement:

P(\text{Not stock}) = 1 - P(\text{Stock fund}) = 1 - 0.43 = 0.57

The answers are:
a)

0.07

0.30

0.57

Frequently asked questions (FAQs)

Question: Find the equation of a hyperbola with center (2, -3), vertices at (4, -3) and (0, -3), and a distance of 6 units from the center to the foci.

Question: How many sides does a regular dodecagon have?

Math question: Solve the inequality 3x + 7 > 20 for x.

New questions in Mathematics

2x-y=5 x-y=4

3(4×-1)-2(×+3)=7(×-1)+2

If f(x) = 3x 2, what is the value of x so that f(x) = 11?

what is the annual rate on $525 at 0.046% per day for 3 months?

9b^2-6b-5

2.3/-71.32

A construction company is working on two projects: house construction and building construction. Each house requires 4 weeks of work and produces a profit of $50,000. Each building requires 8 weeks of work and produces a profit of $100,000. The company has a total of 24 work weeks available. Furthermore, it is known that at least 2 houses and at least 1 building must be built to meet the demand. The company wants to maximize its profits and needs to determine how many houses and buildings it should build to meet demand and maximize profits, given time and demand constraints.

According to a survey in a country 27% of adults do not own a credit card suppose a simple random sample of 800 adults is obtained . Describe the sampling distribution of P hat , the sample proportion of adults who do not own a credit card

solve for x 50x+ 120 (176-x)= 17340