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14 Jun 2012, 02:49
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B
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Difficulty:
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Question Stats:
85% (02:13) correct
15%
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wrong
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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
(A) 9/50
(B) 7/25
(C) 7/20
(D) 21/50
(E) 27/50
14 Jun 2012, 02:49
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SOLUTION
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.
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.
Updated on: 09 Jul 2012, 01:04
Originally posted by cyberjadugar on 14 Jun 2012, 06:09.
Last edited by cyberjadugar on 09 Jul 2012, 01:04, edited 1 time in total.
Last edited by cyberjadugar on 09 Jul 2012, 01:04, edited 1 time in total.
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Quote:
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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! Can someone please lend some wisdom on this problem from TOG 2016 pg 20 #4. 
