The Journal of Finance (December 2011) published a study of whether the decision to invest in the stock market is dependent on IQ Information on a sample of 158,044 adults living in Finland formed the database for the study An IQ score (from a low score of 1 to a high score of 9) was determined for each Finnish citizen as well as whether or not the citizen invested in the stock market The next table gives the number of Finnish citizens in each IQ score investment category Suppose one of the 158,044 citizens is selected at random (a)What is the probability that the Finnish citizen invests in the stock market (b)What is the probability that the Finnish citizen has an IQ score of 6 or higher (c)What is the probability that the Finnish citizen invests in the stock market and has an IQ score of 6 or higher (d)What is the probability that the Finnish citizen invests in the stock market or has an IQ score of 6 or higher (e)What is the probability that the Finnish citizen does not invest in the stock market (f)Are the events Invest in the stock market and IQ score of 1 mutually exclusive Invest in No IQ Score Market Investment Totals NOUAWNE 893 4 659 5 552 1,340 9,409 10,749 2 009 9 993 12,002 5 358 19 682 25 040 8,484 24 640 33 124 10 270 21 673 31 943 6 698 11 260 17 958 5 135 7 010 12 145 4 464 5 067 9 531 Totals 44 651 113 393 158 044 Source Based on M Grinblatt, M Keloharju, and J Linnainaa Q and Stock Market Participation The Journal of Finance Vol 66 No 6 December 201 1 (adapted from Table 1 and Figure 1)

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The Journal of Finance (December 2011) published a study of whether the decision to invest in the stock market is dependent on IQ. Information on

The Journal of Finance (December 2011) published a study of whether the decision to invest in the stock market is dependent on IQ. Information on a sample of 158,044 adults living in Finland formed the database for the study. An IQ score (from a low score of 1 to a high score of 9) was determined for each Finnish citizen as well as whether or not the citizen invested in the stock market. The next table gives the number of Finnish citizens in each IQ score/investment category. Suppose one of the 158,044 citizens is selected at random.

(a)What is the probability that the Finnish citizen invests in the stock market?
(b)What is the probability that the Finnish citizen has an IQ score of 6 or higher?
(c)What is the probability that the Finnish citizen invests in the stock market and has an IQ score of 6 or higher?
(d)What is the probability that the Finnish citizen invests in the stock market or has an IQ score of 6 or higher?
(e)What is the probability that the Finnish citizen does not invest in the stock market?
(f)Are the events Invest in the stock market and IQ score of 1 mutually exclusive?

Invest in No IQ Score Market Investment Totals NOUAWNE 893 4.659 5.552 1,340 9,409 10,749 2.009 9.993 12,002 5.358 19.682 25.040 8,484 24.640 33.124 10.270 21.673 31.943 6.698 11.260 17.958 5.135 7.010 12.145 4.464 5.067 9.531 Totals 44.651 113.393 158.044 Source: Based on M. Grinblatt, M. Keloharju, and J. Linnainaa. "[Q and Stock Market Participation." The Journal of Finance. Vol. 66. No. 6. December 201 1 (adapted from Table 1 and Figure 1)