Each month a brokerage house studies various companies and rates each companys stock as being either low

Each month a brokerage house studies various companies and rates each company€™s stock as being either €œlow risk€ or €œmoderate to high risk.€ In a recent report, the brokerage house summarized its findings about 15 aerospace companies and 25 food retailers in the following table:

. If we randomly select one of the total of 40 companies, find
a The probability that the company€™s stock is moderate to high risk given that the firm is an aerospace company.
b. The probability that the company€™s stock is moderate to high risk given that the firm is a. food retailer.
c. Determine if the events the firm is a food retailer and the firm€™s stock is low risk are independent. Explain.

Transcribed Image Text:

Low Risk Moderate to High Risk Company Type Aerospace company Food retailer 15 10