The summary table giving the number of the 158,044 Finnish citizens in each IQ score/investment category is reproduced below. Again, suppose one of the citizens is selected at random.
For Information: Refer to The Journal of Finance (December 2011) study of whether the decision to invest in the stock market is dependent on IQ, Exercise 3.42.

a. Given that the Finnish citizen has an IQ score of 6 or higher, what is the probability that he/she invests in the stock market?
b. Given that the Finnish citizen has an IQ score of 5 or lower, what is the probability that he/she invests in the stock market?
c. Based on the results, parts a and b, does it appear that investing in the stock market is dependent on IQ? Explain.

Transcribed Image Text:

Q Score Invest in Market No Investment Totals 893 1,340 2,009 5,358 8,484 10,270 6,698 5,135 4,464 4,659 9,409 9,993 19,682 24.640 21,673 11,260 7010 5,067 113,393 5.552 10,749 12.002 25,040 33,124 31,943 17958 12,145 9,531 158,044 Totals 44,651