# Expert Solutions

1. Do you think the government protects investors adequately? This question was part of an online survey of investors under age 65 living in the United States and Great Britain. The number of investors from the United States and the number of investors from Great Britain who answered Yes, No, or Unsure to this question are provided as follows.

Response US  Britain

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Yes 187 197

No 334 411

Unsure 256 213

a. Estimate the probability that an investor living in the Unites States thinks the government is not protecting investors adequately.

b. Estimate the probability that an investor living in Great Britain thinks the government is not protecting investors adequately or is unsure the government is protecting investors adequately.

c. For a  randomly selected investor from these two countries, estimate the probability that the investor thinks the government is not protecting investors adequately.

d. Based upon the survey results, does there appear to be much difference between the perception of investors living in the United States and investors living in Great Britain regarding the issue of the government protecting investors adequately?

2.  The U.S. Census Bureau provides data on the number of young adults, ages 18-24, who are living in their parents home. Let

M= the even a male young adult is living in his parents’ home

F= the event a female young adults is living in her parents’ home

If we randomly select a male young adult and a female young adult, the Census Bureau data enables us to concluded P(M)=.56 and P(F)=.42. The probability that both are living in their parents’ home is .24.

a. What is the probability at least one of the two young adults selected is living in his or her parent’s home?

b. What is the probability both young adults selected are living on their own (neither is living in their parents’ home)?

Chapter 6

3. Is lack of sleep causing traffic fatalities? A study conducted under the auspices of the National Highway Traffic Safety Administration found that the average number of fatal crashes caused by drowsy drivers each year was 1550. Assume the annual number of fatal crashes per y4ar is normally distributed with a standard deviation of 300.

a. What is the probability of fewer than 1000 fatal crashes in a year?

b. What is the probability that the number of fatal crashes will be between 1000 and 2000 for a year?

c. For a year to be in the upper 5% with respect to the number of fatal crashes, how many fatal crashes would have to occur?