ASSN 4.docx - Q1 a S={SSS,SSU,SUS,SUU,USU,USS,UUS,UUU There...

Q1.
a) S={SSS,SSU,SUS,SUU,USU,USS,UUS,UUU}
 There are 8 possible sample points
b) S(B)={BCF,BCf,BcF,Bcf}
S(C)={BCF,BCf,bCF,bCf}
c) S(B  C)={BCF,BCf,BcF,Bcf,bCf,bCF}
d) S(C  F)={BCF,bCF}
e) The Events C and F are NOT mutually exlusive, as both the Corporate Bond Investment and the Forest
Industry Investment could potentially both be successful simultaneously.
Q2.
a)
b) 0.337137 + 0.137149 + 0.026461 = 0.500746 or 50.0746%
1 – 0.499254 = 0.500746 or 50.0746%
c) 0.006428615 or 0.6428615%
d) 0.250883554 or 25.0883554%
e) No, it seems that Household Income is positively correlated with Education Level, as Household
Income seems to rise as the “Highest Level of Education” rises.
Q3.
P(B) = 0.3, P(S) = 0.5, P(B  S) =0.2
a) P(B|S)=P(B  S)/P(S)
P(B|S)=0.2/0.5
P(B|S)=0.4
 The probability of an individual purchasing the product given that the individual recalls seeing the
advertisement is 0.4 or 40%.
 The probability of an individual purchasing the product increases if the individual recalls seeing
the advertisement (0.3 to 0.4 or 30% to 40%).
 As a Decision Maker, I would continue running the advertisement as it seems to have a positive