A recent survey reported in business week dealt with the salaries of CEO\'s at l
ID: 2959413 • Letter: A
Question
A recent survey reported in business week dealt with the salaries of CEO's at large corportations and whether company shareholders made money or lost money.
ceo paid ceo paid less
more than 1 than 1 million Total
million
shareholders made money 2 11 13
shareholders lost money 4 3 7
Total 6 14 20
If a company randomly selected from the list of 20 studied, what is the probabilty
a A CEO made more than 1 million. my answer 2/20
b.the ceo made more than 1 million or the shareholder lost money. my answer 6/20
c the ceo made more than 1 million given the shareholders lost money. my answer ?
d. of selecting 2 ceo and finding they both made more than 1 million. my answer 2/20
Explanation / Answer
a A CEO made more than 1 million. 6/20 = 0.3 ----------------------------------------------------------------------------------------------------------- b.the ceo made more than 1 million or the shareholder lost money. P(the CEO making more than $1M) = 6/20 P(the shareholder losing money) = 7/20 6/20 + 7/20 =13/20 However we have to subtract the companies where both things are true, because they were counted in both groups. 13/20 – 4/20 = 9/20 = 0.45 ----------------------------------------------------------------------------------------------------------- c the ceo made more than 1 million given the shareholders lost money. 4/7 = 0.5714 ----------------------------------------------------------------------------------------------------------- d. of selecting 2 ceo and finding they both made more than 1 million. P(the first CEO makes more than $1M) =6/20 P(The second CEO makes more than $1M) = 5/19 So 6/20+5/19 =30/380 = 0.0789