Consider the contingency table below. Use the below cross-tabulation to answer the next four questions:

1. When it comes to the offshoring of productive and innovative activities, a randomly selected firm is most likely to offshore:

A. the production of their semi-finished product (e.g., components).

B. the production of their finished product.

C. their innovative activities.

2. Conditional upon a firm being relatively small (i.e., with an annual turnover of 10 million euros or less), what is the empirical probability that they offshore their innovative activities? (Give your answer in decimal. Round up your answer to two decimal points.)

3. Conditional upon a firm being relatively large (i.e., with an annual turnover of 250 million euros or more), what is the empirical probability that they offshore their innovative activities? (Give your answer in decimal. Round up your answer to two decimal points.)

4. Your answers to the last two questions suggest that with an increase in relative firm size (i.e., increase in turnover), the probability that a given firm offshores its innovative activities would:

A. remain the same

B. increase

C. decrease.

Annual Turnover (Mil. Euros)	Number of firms who offshore the production of their finished product.	Number of firms who offshore the production of their semi-finished product	Number of firms who offshore their innovative activities (e.g., R&D)
Less than 1	3	4	1
1-2	18	10	1
2-10	145	115	21
10-15	48	39	3
15-50	115	76	26
50-250	86	49	24
Greater than 250	46	25	18
Total	461	318	94