Among group of 2500 people 35% invested in municipal bond, 18% in oil stock,…

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Among group of 2500 people 35% invested in municipal bond, 18% in oil stock, 7% in both. If 1 person is to be randomly selected from 2500 what is the probability that a person selected will be one invested in municipal but not in oil stocks ?

  1. A.

    3/10

  2. B.

    7/25

  3. C.

    4/15

  4. D.

    7/10

Attempted by 13 students.

Show answer & explanation

Correct answer: B

total no.of people = 2500

municipal bonds = 2500*35/100 = 875

oil stocks = 2500*18/100 = 450

municipal bonds and oil stocks(both) = 2500*7/100 = 175

We need only person who invests in municipal bonds

i.e., municipal bonds - both(X) = 875-175 = 700

The probability is = X/total = 700/2500 = 7/25

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