The Probability That a Farmer Is in Debt Is 0

question 58

Short Answer

The probability that a farmer is in debt is 0.76.The joint probability that a farmer is in debt and lives in the Midwest is 0.21.The probability (rounded to three decimal places)that a randomly selected farmer lives in the Midwest,given that he is in debt is:

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Definitions:

Efficient Frontier

A portfolio optimization concept that outlines the set of optimal portfolios offering the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Correlation

A statistical measure that describes the extent to which two variables move in relation to each other, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).

Portfolio Weight

The proportion of the total value of an investment portfolio that is attributed to each individual investment.

Total Value

The summation of all assets or investments owned by an individual or entity, reflecting overall worth.