The report from a stock market analyst indicates that 25% of the predicted shares performed much better than the market average, 25% much worse and the remaining 50% about the same as the average. From 40% of the shares that performed muchbetter than the market average, the 10% that did much worse and the 20% that did as well as the market were rated good buy by the analyst.

1. Draw the tree diagram to summarize the above information.

(8marks)

1. What is the probability that a share chosen at random performed much better and rated good buy?

(3marks)

1. What is the probability that a share rated a good buy by the analyst performed worse than the average?

(3marks)