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Among a group of 2,500 people, 35 percent invest in

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Among a group of 2,500 people, 35 percent invest in [#permalink] New post 14 Jun 2012, 01:49
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Among a group of 2,500 people, 35 percent invest in municipal bonds, 18 percent invest in oil stocks, and 7 percent invest in both municipal bonds and oil stocks. If 1 person is to be randomly selected from the 2,500 people, what is the probability that the person selected will be one who invests in municipal bonds but NOT in oil stocks?

(A) 9/50
(B) 7/25
(C) 7/20
(D) 21/50
(E) 27/50

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Re: Among a group of 2,500 people, 35 percent invest in [#permalink] New post 14 Jun 2012, 01:49
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Among a group of 2,500 people, 35 percent invest in municipal bonds, 18 percent invest in oil stocks, and 7 percent invest in both municipal bonds and oil stocks. If 1 person is to be randomly selected from the 2,500 people, what is the probability that the person selected will be one who invests in municipal bonds but NOT in oil stocks?

(A) 9/50
(B) 7/25
(C) 7/20
(D) 21/50
(E) 27/50

Given:
\(0.35*2,500=875\) invest in municipal bonds;
\(0.07*2,500=175\) invest in in both municipal bonds and oil stocks;

Therefore \(875-175=700\) invest in municipal bonds but NOT in in oil stocks. (Or directly: 35%-7%=28% of 2,500, which is 700, invest in municipal bonds but NOT in in oil stocks).

\(P=\frac{Favorable}{Total}=\frac{700}{2,500}=\frac{7}{25}\).

Answer: B.
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Re: Among a group of 2,500 people, 35 percent invest in [#permalink] New post 14 Jun 2012, 05:09
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Among a group of 2,500 people, 35 percent invest in municipal bonds, 18 percent invest in oil stocks, and 7 percent invest in both municipal bonds and oil stocks. If 1 person is to be randomly selected from the 2,500 people, what is the probability that the person selected will be one who invests in municipal bonds but NOT in oil stocks?

(A) 9/50
(B) 7/25
(C) 7/20
(D) 21/50
(E) 27/50
Hi,

Among a group of 2,500 people, 35 percent invest in municipal bonds, 18 percent invest in oil stocks, and 7 percent invest in both municipal bonds and oil stocks.

As per the attached venn diagram, we have to find the number of people in shaded portion.
=35%-7%=28%

Thus, probability = 0.28 = 7/25

(2,500 people, 18 percent invest in oil stocks is not required.)

Answer is (B)
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Last edited by cyberjadugar on 09 Jul 2012, 00:04, edited 1 time in total.
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Re: Among a group of 2,500 people, 35 percent invest in [#permalink] New post 14 Jun 2012, 05:50
People with Municipal Bond but not with Oil Stock
= People with Municipal Bond and Oil stock – People with Municipal Bond but not Oil S
= 35%of 2500 – 7% of 2500
= 700
Now,
P ( one person investing in Municipal Bond but not in Oil Stock ) = 700 /2500 = 7/25

Answer -B
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Re: Among a group of 2,500 people, 35 percent invest in [#permalink] New post 14 Jun 2012, 19:19
Percentage investing in Municipal bonds = 35%
Percentage investing in both = 7%
Percentage investing in ONLY Municipal bonds = (35-7)% = 28%

Therefore, Probability of selecting one who invests Only in Municipal bonds = 28% = 28/100 = 7/25.
Answer (B) is correct.
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Re: Among a group of 2,500 people, 35 percent invest in [#permalink] New post 16 Jun 2012, 02:52
Difficulty level 600+.

Probability of percentage invested in MB/ Total

35%-7%=28% of 2500= 700

P= 700/2500= 7/25
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Re: Among a group of 2,500 people, 35 percent invest in [#permalink] New post 18 Jun 2012, 06:07
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For this type of question, I sometimes use a 2X2 table approach. The table is just an organized summary of the Venn diagram.
Since in this case a probability is required, there is no need to calculate actual numbers. So, using percentages, we can fill out the table (see attached image). I started with 35, 18 and 7, then for example 11=18-7, 28=35-7, 82=100-18, 54=82-28, 65=100-35. There is more than one possible sequence. Necessarily, one must get the sum in the bottom row and that in the rightmost column exactly 100.
In fact, you don't need to fill out the whole table, once you have that Municipal and noOil represents 28%, you are done. I present the whole table just to illustrate the use of it.

So, those who invest in Municipal and noOil stocks represent 28%=28/100=7/25.

Correct asnwer is B.
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Last edited by EvaJager on 18 Jun 2012, 07:14, edited 1 time in total.
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Re: Among a group of 2,500 people, 35 percent invest in [#permalink] New post 18 Jun 2012, 06:42
IMO. B :) same explanation as above
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Re: Among a group of 2,500 people, 35 percent invest in [#permalink] New post 22 Jun 2012, 01:48
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Among a group of 2,500 people, 35 percent invest in municipal bonds, 18 percent invest in oil stocks, and 7 percent invest in both municipal bonds and oil stocks. If 1 person is to be randomly selected from the 2,500 people, what is the probability that the person selected will be one who invests in municipal bonds but NOT in oil stocks?

(A) 9/50
(B) 7/25
(C) 7/20
(D) 21/50
(E) 27/50

Given:
\(0.35*2,500=875\) invest in municipal bonds;
\(0.07*2,500=175\) invest in in both municipal bonds and oil stocks;

Therefore \(875-175=700\) invest in municipal bonds but NOT in in oil stocks. (Or directly: 35%-7%=28% of 2,500, which is 700, invest in municipal bonds but NOT in in oil stocks).

\(P=\frac{Favorable}{Total}=\frac{700}{2,500}=\frac{7}{25}\).

Answer: B.
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Re: Among a group of 2,500 people, 35 percent invest in [#permalink] New post 28 May 2015, 15:56
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Confusing Quant Prob [#permalink] New post 11 Jun 2015, 18:59
Hello everyone and thank you for this forum!!!

I admit it has been a few years since I've sat down to attack standardized test, but my GOODNESS :shock: ! Can someone please lend some wisdom on this problem from TOG 2016 pg 20 #4.

Among a group of 2500 people, 35% invest in municipal bonds, 18% invest in oil stocks, and 7% invest in both municipal bonds and oil stocks. If 1 person is randomly selected from the 2500 people, what is the probability that the person will be one who invests in municipal bonds but NOT in oil stocks?

A. 9/50
B. 7/25
C. 7/20
D. 21/50
E. 27/50

Thanks in advance!
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Re: Confusing Quant Prob [#permalink] New post 11 Jun 2015, 19:43
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LouieV wrote:
Hello everyone and thank you for this forum!!!

I admit it has been a few years since I've sat down to attack standardized test, but my GOODNESS :shock: ! Can someone please lend some wisdom on this problem from TOG 2016 pg 20 #4.

Among a group of 2500 people, 35% invest in municipal bonds, 18% invest in oil stocks, and 7% invest in both municipal bonds and oil stocks. If 1 person is randomly selected from the 2500 people, what is the probability that the person will be one who invests in municipal bonds but NOT in oil stocks?

A. 9/50
B. 7/25
C. 7/20
D. 21/50
E. 27/50

Thanks in advance!


So this question actually pertains to overlapping sets.

Say, there are 100 people instead (since we have percentages)
Number of people investing in MB = 35
Number of people investing in OS = 18
Number of people investing in both = 7

So how many people invest in MB but not OS? 35 invest in MB but 7 invest in both (so out of 35, 7 invest in OC too). We need to remove these 7 since we need the number of people who invest in MB only. We get 28.
So 28 out of 100 people invest in only MB. So out of 100, if we pick one person, the probability that he invests in MB only is 28/100 = 7/25

The probability remains same no matter how many people there are - 100 or 2500 or 500000 etc.

Answer (B)

Check out overlapping sets: http://www.veritasprep.com/blog/2012/09 ... ping-sets/
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Confusing Quant Prob [#permalink] New post 11 Jun 2015, 19:49
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LouieV wrote:
Hello everyone and thank you for this forum!!!

I admit it has been a few years since I've sat down to attack standardized test, but my GOODNESS :shock: ! Can someone please lend some wisdom on this problem from TOG 2016 pg 20 #4.

Among a group of 2500 people, 35% invest in municipal bonds, 18% invest in oil stocks, and 7% invest in both municipal bonds and oil stocks. If 1 person is randomly selected from the 2500 people, what is the probability that the person will be one who invests in municipal bonds but NOT in oil stocks?

A. 9/50
B. 7/25
C. 7/20
D. 21/50
E. 27/50

Thanks in advance!


Total People = 2500 people

35% invest in municipal bonds, i.e Probability of Investing in Mutual Bonds = 0.35
i.e. i.e Probability of NOT Investing in Mutual Bonds = 0.65

18% invest in oil stocks i.e Probability of Investing in Oil stock = 0.18
i.e Probability of NOT Investing in Oil stock = 0.82

7% invest in both municipal bonds and oil stocks = 0.07

i.e. we can conclude that Probability of NOT investing in any one of them = 1-(0.35+0.18+0.07) = 0.54

Probability of Investing in Mulual Bond but NOT in Oil Stock = 0.82-0.54 = 0.28 = 28/100 = 7/25

Answer: Option
[Reveal] Spoiler:
B

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Confusing Quant Prob [#permalink] New post 11 Jun 2015, 20:46
Thank you for explaining this in such simple terms Karishma. GMATinsight, the visual was definitely a big help in allowing me to see the arithmetic behind the words. I was stomped, but I'm sure my gears will get back to speed as I progress in my preparation. THANKS EVERYONE!
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Re: Among a group of 2,500 people, 35 percent invest in [#permalink] New post 12 Jun 2015, 00:44
Expert's post
LouieV wrote:
Hello everyone and thank you for this forum!!!

I admit it has been a few years since I've sat down to attack standardized test, but my GOODNESS :shock: ! Can someone please lend some wisdom on this problem from TOG 2016 pg 20 #4.

Among a group of 2500 people, 35% invest in municipal bonds, 18% invest in oil stocks, and 7% invest in both municipal bonds and oil stocks. If 1 person is randomly selected from the 2500 people, what is the probability that the person will be one who invests in municipal bonds but NOT in oil stocks?

A. 9/50
B. 7/25
C. 7/20
D. 21/50
E. 27/50

Thanks in advance!


Merging topics.

Please read carefully and follow: rules-for-posting-please-read-this-before-posting-133935.html
_________________

NEW TO MATH FORUM? PLEASE READ THIS: ALL YOU NEED FOR QUANT!!!

PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

RESOURCES: [GMAT MATH BOOK]; 1. Triangles; 2. Polygons; 3. Coordinate Geometry; 4. Factorials; 5. Circles; 6. Number Theory; 7. Remainders; 8. Overlapping Sets; 9. PDF of Math Book; 10. Remainders; 11. GMAT Prep Software Analysis ; 12. SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) ; 12. Tricky questions from previous years.

COLLECTION OF QUESTIONS:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS ; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


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Re: Among a group of 2,500 people, 35 percent invest in   [#permalink] 12 Jun 2015, 00:44
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