A municipal bond service has three rating categories (A, B, and C). Suppose that in the past year, of the municipal bonds issued throughout the United States, 70% were rated A, 20% were rated B, and 10% were rated C. Of the municipal bonds rated A, 50% were issued by cities, 40% by suburbs, and 10% by rural areas. Of the municipal bonds issued B, 60% were issued by cities, 20% by suburbs, and 20% by rural areas. Of the municipal bonds rated C, 90% were issued by cities, 5% by suburbs, and 5% by rural areas. a. If a new municipal bond is to be issued by a city, what is the probability that it will receive an A rating? b. What proportion of municipal bonds are issued by cities? c. What proportion of municipal bonds are issued by suburbs?

Answers

Answer 1

Answer:

(a) The probability that the new municipal bond issued will receive an A rating given that it was issued by a city is 0.196.

(b) Thus, the probability of municipal bonds issued by suburbs is 0.325.

Step-by-step explanation:

The data provided is as follows:

P (A) = 0.70

P (B) = 0.20

P (C) = 0.10

P (c | A) = 0.50

P (s | A) = 0.40

P (r | A) = 0.10

P (c | B) = 0.60

P (s | B) = 0.20

P (r | B) = 0.20

P (c | C) = 0.90

P (s | C) = 0.05

P (r | C) = 0.05

(a)

The Bayes' theorem states that the conditional probability of an event Y[tex]_{i}[/tex] given that another event X has already occurred is:

[tex]P(Y|X)=\frac{P(X|Y)P(Y)}{\sum\limits_{i} {P(X|Y_{i})P(Y_{i})}}[/tex]

Compute the probability that the new municipal bond issued will receive an A rating given that it was issued by a city as follows:

[tex]P(A|c)=\frac{P(c|A)P(A)}{P(c|A)P(A)+P(c|B)P(B)+P(c|C)P(C)}[/tex]

           [tex]=\frac{(0.50\times 0.70)}{(0.50\times 0.70)+(0.60\times 0.20)+(0.10\times 0.90)}\\\\=\frac{0.35}{0.56}\\\\=0.196[/tex]

Thus, the probability that the new municipal bond issued will receive an A rating given that it was issued by a city is 0.196.

(b)

The law of total probability states that:

[tex]P(X)=\sum\limits_{i} {P(X|Y_{i})}[/tex]

Compute the probability of municipal bonds issued by suburbs as follows:

[tex]P(s)=P(s|A)P(A)+P(s|B)P(B)+P(s|C)P(C)[/tex]

        [tex]=(0.40\times 0.70)+(0.20\times 0.20)+(0.10\times 0.05)\\\\=0.28+0.04+0.005\\\\=0.325[/tex]

Thus, the probability of municipal bonds issued by suburbs is 0.325.


Related Questions

Simplify.
4(1 + 8 . 9) - 62

Answers

Answer: -22.4

Step-by-step explanation:

If the numbers are correct and assuming the 8.9 is written as a decimal the answer is -22.4. If the 8 and 9 are multiplied than the answer is completely different.  

3.1 plus 7.4 plus 6.9

Answers

Answer: 17.4

Step-by-step explanation:

There isn't much to it... it's basic addition.

I guess if you were not using a calculator you would set it up like this:

3.1

+7.4

+6.9

---------

17.4

Answer:

17.4

Step-by-step explanation:

if you estimate all of these you get 3,7, and 7, these(added together) are 17,

If the second term in a geometric sequence is -8 and the common ratio is 2, what is the value of the third term?
-4
-10
-16

Answers

Answer:-16

Step-by-step explanation:

Mabel earn 180$ in 18 hours.at this rate how many dollars will she earn in 30 hours?

Answers

Since she earns $180 in 18 hours, she earns a rate of $ 180/18 per hour, which is $10 per hour.

In 30 hours she earns 30 times 10 dollars, which is 300 dollars.

You could also set up a proportion saying that 180/18 = x/30, then cross multiply to get 18x = 5400, and divide by 18 on both sides to get 300.

Answer:

Mabel will earn 300$ in 30 hours

Step-by-step explanation:

I took 180 and divided it by 18 so that I can find how much money she earns per hour.

180÷18= 10

10 × 30= 300

What is the solution to the system of equations?

{2x+3y=23
4x−5y=13

Answers

The answer is (7, 3)

Suppose a granola bar company estimates that its monthly cost is
C(c) = 500x2 + 400% and its monthly revenue is
R(x) = -0.62% + 80022 – 300x + 600, where x is in thousands of
granola bars sold. The profit is the difference between the revenue and the
cost.
What is the profit function, P(x)?
A. P(x) = -0.623 + 1300x2 + 100x + 600
B. P(x) = 0.62+ 300x2 – 700x + 600
C. P(x) = -0.6x3 + 300x2 – 700x + 600
D. P(2) = 0.623 – 300x2 + 700x - 600

Answers

Answer:

C. P(x) = -0.6x3 + 300x^2 – 700x + 600

Step-by-step explanation:

The profit function is P(x) = -0.6x³ + 300x² - 700x + 600.

What is Function?

A function is a relation from a set A to a set B where the elements in set A only maps to one and only one image in set B. No elements in set A has more than one image in set B.

Given,

Cost function, C(x) = 500x² + 400x

Revenue function, R(x) = -0.6x³ + 800x² - 300x + 600

Profit is the difference between the revenue and the cost.

Profit function is therefore the difference of revenue function and the cost function.

P(x) = R(x) - C(x)

P(x) = (-0.6x³ + 800x² - 300x + 600) - (500x² + 400x)

      = -0.6x³ + 800x² - 300x + 600 - 500x² - 400x

      = (-0.6x³) + (800x² - 500x²) + ( - 300x - 400x) + 600

      = -0.6x³ + 300x² - 700x + 600

Hence the profit function of the granola bar company is P(x) = -0.6x³ + 300x² - 700x + 600.

To learn more about Functions, click on the link given below :

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HHHHHHEEEEEELLLLLLPPPPPP!!!!!!

Answers

Answer:

Undefined

Step-by-step explanation:

if the line is like this __________________ then the slope is zero

If the line is vertical like up and down then the line is undefined.

Hope this helped!!!

Answer:

It is undefined slope so it would be x=3

Step-by-step explanation:

Which of these can be the graph of the equation

Answers

Answer: It's letter A, because it's slope-intercept form.

Step-by-step explanation:

20. A rectangle has a length of x + 2 meters and a width of 2x - 5. (A.APR.1)
A. Write an expression for the perimeter of the rectangle. Simplify your final answer.
B. Write an expression for the area of the rectangle. Simplify your final answer.
x + 2
2x - 5
A. Perimeter =
B. Area =
C. If x is 5, what is the perimeter? What is the area?
Rubric
2 pts - Two key elements are present
1 pt - One key element is present
O pts - No key elements are present

Answers

Answer:

A:

2(x + 2) + 2(2x - 5) =

2x + 4 + 4x - 10 =

6x - 6

perimeter = 6x - 6

B:

(x+2)(2x - 5)            expand the brackets:

2x² - 5x + 4x - 10

area = 2x² - x - 10

C:

area = 6x - 6 = (6 x 5) - 6 = 30 - 6 = 24

perimeter = 2x² - x - 10 = (2 x 5²) - 5 - 10 = (2 x 25) - 5 - 10 = 50 - 5 - 10 = 35

brainliest please? x

Maria bought a blouse on sale for 30% off. The sale price was $28.76. What was the original price? Write an equation to model the situation and solve it. Use variable p for the original price. Round to the nearest hundredth.

Answers

Answer:

The original price is 37.38

Step-by-step explanation:

I'm tired and don't want to explain too much but you get 30 percent then add that number to the first price.

CERTAIN ANSWERS!!! Please assist me! I will award you brain crown! Thank you in advance:))

Answers

Answer:

See below.

Step-by-step explanation:

  Statements:                                              Reasons:

1) [tex]\angle 2\cong\angle 3[/tex]                                                    Given

2) [tex]m\angle2=m\angle 3[/tex]                                             Definition of Congruence

3) [tex]\angle 1\text{ and } \angle 2\text{ form a linear pair}[/tex]                   Given

4) [tex]\angle 1 \text{ and } \angle 2\text{ are supplementary}[/tex]                  Supplement Theorem

5) [tex]m\angle 1+m\angle 2=180^\circ[/tex]                                 Definition of Supplementary Angles

6) [tex]m\angle 1+m\angle 3=180&^\circ[/tex]                                 Substitution

7) [tex]\angle 1\text{ and } \angle 3 \text{ are supplementary}[/tex]                 Definition of Supplementary

And we're done!

6b.) Hence, or otherwise, evaluate g(f(3))

Answers

Answer:

-25

Step-by-step explanation:

g(f(3))= g(-5)

=4(-5)-5

= -20-5

=-25

Answer:

[tex]g(f(3))=-25[/tex]

Step-by-step explanation:

We have the two functions: [tex]f(x)=-2x+1[/tex] and [tex]g(x)=4x-5[/tex].

And we want to evaluate [tex]g(f(3))[/tex].

So, let's evaluate f(3) first. Substitute 3 into f(x). This yields:

[tex]f(3)=-2(3)+1[/tex]

Multiply and add:

[tex]f(3)=-6+1=-5[/tex]

So, our expression is now:

[tex]g(f(3))\Rightarrow g(-5)[/tex]

Substitute -5 for g(x):

[tex]g(-5)=4(-5)-5[/tex]

Multiply and subtract:

[tex]g(-5)=-20-5=-25[/tex]

Therefore:

[tex]g(f(3))=-25[/tex]

What is the length of AB?

A. 2
B. 6
C. 8
D. 4

Answers

Answer:

maybe ; the length of ab is 6

Continue the pattern for five more terms on the list. zy, zx, zw, x, yw, yv, xw...

Answers

It’s gonna be zy x yw yv

7th grade math help me plzzz

Answers

Answer:

-75

Step-by-step explanation:

-50+15=-35

-35+-40=-75

i hope this helps:)

Nico wanted to determine the number of students in his school who buy school lunch.he walked around the cafeteria one lunch period looking to see whether every fifth person in the cafeteria purchased lunch or brought their own.which method did he use to collect his data

Answers

Answer:

Observational study

Step-by-step explanation:

Answer:

D: Observational Study

Step-by-step explanation:

edg2020

He did not go around asking people how many of them buy lunch, so it is not a survey. He did not create the settings and conditions or simulate possible examples, so its not B. He did not control or change any variables, so it is not an experiment. He simply walked around and Observed people to get information for his study. Thus it is D.

ASAPP!!!!!!!!!! 100 points!!!!!

Answers

Answer:

rate of change formula is (y2-y1)/(x2-x1)

so (36-24)/(7.5-5)= 12/2.5=4.8lbs

So for every 4.8lbs you give an extra mL of dosage

Answer: A) rate of change formula is (y2-y1)/(x2-x1)

so (36-24)/(7.5-5)= 12/2.5=4.8lbs.

n x 25 = 5 x 60.

10
12
20
25

Answers

It’s going to be 12 because 5*60=300/25=12.

List the sides of triangle ABC from largest to smallest if m

Answers

I can not see the triangles so therefore I can not answer your question. Next time please include a photo!

X=
x =
A. 6 2/3
B. 9
C. 12

Answers

Answer:

B). x=9

Step-by-step explanation:

4 x (5 + 4) =3 ×(x + 3)

36=3x+9

3x=27

x=9

I really need the answer. will give brainliest!
If we are driving to California. We are staring at a map. The map says for every inch in a half on the map it comes out to be 5 miles. There are 137 miles from Houston to Hufflepuffsberg. How many inches is it from Houston to Hufflepuffsberg.

Answers

Answer:

The answer is 27.4 I'm bad at math and I tried so hope is correct

6th grade math I mark as brainliest

Answers

Answer:

720

Step-by-step explanation:

Just multiply all the measurements together

10 times 8 times 9 equals 720

Volume = height x width x depth

now just substitute:
V = 10 x 8 x 9
V = 80 * 9
V = 720

the volume is 720 cubic feet

HELPPPPPP MEEEEE

Question
Use the mapping to determine which of the following are elements of the domain.

Need the map to know the answer the photo of it is up there if you want a better view of it.

110
130
24.0
140
20.6
18.9

Answers

Answer:

110, 130, 140

Step-by-step explanation:

The x-values are the elements of the domain.

What is an equation of the line that passes through the point (-1, -3) and is perpendicular to the line x 2y = 14?​

Answers

Hi sorry help this helped

If 6 × 6 = 36, what value should be subtracted from 36 to find the product of 5 × 6?

Answers

Answer:

The answer to this question is simply 6.

Step-by-step explanation:

You just need to subtract 6 from 36 to get the product of 5x6 which is 30

Convert 36 inches to feet. There are 12 inches in a foot.
A. 432 feet
B. 3 feet
C. 6 feet
D. 360 feet

Answers

Answer:

B

Step-by-step explanation:

36/12=3 feet

B : 3 feet
36 inches • (1 foot/12 inches) = 3

Geometry math question help please look at the attachment. :)

Answers

Answer:

x=20

Step-by-step explanation:

2x + 20 = 3x

-2x        -2x

20 = x

7O00 dollars in invested in a bank account at an interest rate of 10 perce per year compounded continunaly. Meanwhile, 28000 dollars invested in a bank account at an intarest rate of 4 percent compounded annually. Detormine graphically (using technology) to the nearest year, after how many years will the two accounts have the same balance. ​

Answers

Answer:

3 years i think

Step-by-step explanation:

What is NOT a way to write 52 + 80?
A.
50 + 2 + 80
B.
(50 + 80) + 2
c.
50 + 80 + 2 + 8
D.
50 + 2 + 80 + 0

Answers

Answer: C

Step-by-step explanation: 50+2+80+8 is not right

The answer is c because 50 + 80 + 2 + 8 is incorrect it has an extra number which is the eight at the end

A computer can perform 4.66 x 10^8 calculations per second, what is the performance of the computer in one minute?
any help is appreciated!!

Answers

Answer:

4.66 x 10^9

Step-by-step explanation:

The performance of the computer in one minute is 2.70x10¹⁰ per minute after performing unit conversion.

What is unit conversion?

It is defined as the conversion from one quantity unit to another quantity unit followed by the process of division, and multiplication by a conversion factor.

It is given that:

A computer can perform 4.66 x 10⁸ calculations per second,

As we know,

1 minute = 60 seconds

1 second = 1/60 minutes

The performance of the computer in one minute = 4.66 x 10⁸(1/(1/60))

The performance of the computer in one minute = 4.66x60x 10⁸

The performance of the computer in one minute = 279.6x10⁸

= 2.70x10¹⁰ per minute

Thus, the performance of the computer in one minute is 2.70x10¹⁰ per minute after performing unit conversion.

Learn more about the unit conversion here:

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