Open EndRunGuide. pdf, the EndRun Financial Services “ Guide to Investing,” and read the information about the Guaranteed Investment Package ( GIP). Read the claims and examine the supporting data. Then answer the following questions:

1. How accurate is the claim of the probability of success for EndRun’s GIP? In what ways is the claim misleading? How would you calculate and state the probability of having an annual rate of return not less than 15%?

2. Using the table found under the “ Show Me the Winning Probabilities” subhead, compute the proper probabilities for the group of investors. What mistake was made in re-porting the 7% probability claim?

3. Are there any probability calculations that would be appropriate for rating an investment service? Why or why not?