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2. A stock market analyst examined the performance of the shares of a large number of corporations. When the performance of these stocks was investigated year later, it tumed out that 25% performed much better than the market average; 25% performed much worse; and remaining shares performed about the same as the average. 40% of the stocks that performed much better than the market average were rated as “good buys" by the analyst; as were 20% of those that did about as well as market average and 10% of those that did much worse than market average. What is the probability that a stock rated as "good buys" by the analyst performed much better than the average?

2. A stock market analyst examined the performance of the shares of a large number of corporations. When the performance of these stocks was investigated year later, it tumed out that 25% performed much better than the market average; 25% performed much worse; and remaining shares performed about the same as the average. 40% of the stocks that performed much better than the market average were rated as “good buys" by the analyst; as were 20% of those that did about as well as market average and 10% of those that did much worse than market average. What is the probability that a stock rated as "good buys" by the analyst performed much better than the average?

Calculus For The Life Sciences
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.EA: Extended Application Using Extrapolation To Predict Life Expectancy
Problem 7EA
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2. A stock market analyst examined the performance of the shares of a large number of corporations. When the performance of these stocks was investigated year later, it turned out that 25% performed much better than the market average; 25% performed much worse; and remaining shares performed about the same as the average. 40% of the stocks that performed much better than the market average were rated as “good buys" by the analyst; as were 20% of those that did about as well as market average and 10% of those that did much worse than market average. What is the probability that a stock rated as “good buys" by the analyst performed much better than the average?
Transcribed Image Text:2. A stock market analyst examined the performance of the shares of a large number of corporations. When the performance of these stocks was investigated year later, it turned out that 25% performed much better than the market average; 25% performed much worse; and remaining shares performed about the same as the average. 40% of the stocks that performed much better than the market average were rated as “good buys" by the analyst; as were 20% of those that did about as well as market average and 10% of those that did much worse than market average. What is the probability that a stock rated as “good buys" by the analyst performed much better than the average?
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