Each month a brokerage house studies various companies and rates each company's stock as being either "low risk" or "moderate to high risk." In a recent report, the brokerage house summarized its findings about 26 aerospace companies and 81 food retailers in the following table:
Company Type Low Risk Moderate to High Risk
Aerospace company 9 17
Food retailer 57 24
If we randomly select one of the total of 107 companies, find
(a) The probability that the company's stock is moderate to high risk given that the firm is an aerospace company. (Round your answer to 2 decimal places.)
P(high|aero)
(b) The probability that the company's stock is moderate to high risk given that the firm is a food retailer.(Round your answer to 2 decimal places.)
P(high|food)
(c) Determine if the company type is independent of the level of risk of the firm's stock. (Round your answers to 2 decimal places.)
Dependent. For two events to be independent, P(Aero | Low) = P(Aero). P(Aero | Low)
= but the P(Aero) = . They are not equal.