Question

An investment advisor believes that there is a 30% chance of making money by investing in a specific stock. If the stock makes money, then there is a 52% chance that among those making money, they would also get a dividend. Find the probability that the investor makes money but does not receive a dividend.

Answer 1

First, you have to find the 52% of the 30%(chance that he gets a dividend) .Then you simply have to subtract the result (15.6%) from the 30%. Your result is 14.4% chance that he wont get a divident.

Answer 2

14.4%

Explanation:

An investment advisor believes that there is a 30% chance of making money by investing in a specific stock. If the stock makes money, then there is a 52% chance that among those making money, they would also get a dividend. Find the probability that the investor makes money but does not receive a dividend.

Probability is the chance/likelihood that an event will occur or not

The chances that one makes money from a stock is 30%

Chances that one will not=70%

Chances that there will dividend among those who made money is =52%

chances that there wont be dividend is =100%-52%=48%

the probability that One will make money and not receive a dividend

is 30%*(100%-52%)

14.4%