SOLUTION: This contingency table shows average yield (rows) and average duration (columns) for 38 bond funds. For a randomly chosen bond fund, find the probability that: a. The bond fund i

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Question 251397: This contingency table shows average yield (rows) and average duration (columns) for 38 bond
funds. For a randomly chosen bond fund, find the probability that:
a. The bond fund is long duration.
b. The bond fund has high yield.
c. The bond fund has high yield given that it is of short duration.
d. The bond fund is of short duration given that it has high yield.


Yield Short (D1) Intermediate (D2) Long (D3) Row Total
Small (Y1) 8 2 0 10
Medium (Y2) 1 6 6 13
High (Y3) 2 4 9 15
Column Total 11 12 15 38

Answer by stanbon(75887)   (Show Source): You can put this solution on YOUR website!
This contingency table shows average yield (rows) and average duration (columns) for 38 bond
funds. For a randomly chosen bond fund, find the probability that:
a. The bond fund is long duration.: 15/38
b. The bond fund has high yield.: 15/38
c. The bond fund has high yield given that it is of short duration.:2/11
d. The bond fund is of short duration given that it has high yield.: 2/16
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Cheers,
Stan H.


Yield Short (D1) Inter(D2)Long (D3) Row Total
Small (Y1) 8 2 0 10
Medium (Y2) 1 6 6 13
High (Y3) 2 4 9 15
Column Total 11 12 15 38

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