The following table summarizes the results of a poll taken of CEOs and analysts concerning the economic impact of a pending piece of legislation: Group Think it will have a positive impact Think it will have a negative impact Total CEO’s 40 30 70 Analysts 70 60 130 110 90 200 What is the probability that a randomly selected individual from this group will be an analyst that thinks that the legislation will have a positive impact on the economy? 0.30. 0.45. 0.35. Explanation 70 analysts / 200 individuals = 0.35. Can anyone explain this further
P(Analyst ∪ Positive) = 70/200 = 0.35 = 35% From the table you know that you have 70 analysts who think that the legislation will be positive. The probability of randomly selecting one of these 70 analysts out of the total 200 interviewed persons (population) is simply 70 divided by 200.