Question

An individual stock is selected at random from the portfolio represented by the box-and-whisker plot shown to the right. Find the probability that the stock price is

(a) less than $25
(b) between $25 and $57
(c) $31 or more.

Answer 1

To find the probability that the stock price is less than $25, between $25 and $57, and $31 or more, we can use the box-and-whisker plot to determine the areas under the curve.

Step-by-step explanation:

To find the probability that the stock price is less than $25, we need to find the area under the box-and-whisker plot to the left of $25. We can see that the lower whisker extends to $16, and the first quartile (Q1) is at $19. Therefore, the probability is the area between $16 and $19 divided by the total area.

To find the probability that the stock price is between $25 and $57, we need to find the area under the box-and-whisker plot between these two values. We can see that the median (Q2) is at $31, and the third quartile (Q3) is at $40. Therefore, the probability is the area between $31 and $40 divided by the total area.

To find the probability that the stock price is $31 or more, we need to find the area under the box-and-whisker plot to the right of $31. We can see that the upper whisker extends to $57. Therefore, the probability is the area between $31 and $57 divided by the total area.