Downturn in the economy


It is known that 28% of clients of an investment firm have invested in derivatives, and the rest have not. Following a downturn in the economy, 95% of the clients who invested in derivatives are bankrupted, while only 15% of the clients who did not invest in derivatives are bankrupted.

a) If you know that a randomly chosen client is bankrupt, what is the probability that they invested in derivatives?

b) What is the probability that a randomly chosen client is not bankrupt and did not invest in derivatives?

c) What is the probability that a randomly chosen client is not bankrupt or did not invest in derivatives?

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Basic Statistics: Downturn in the economy
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