An Investment Firm Has Classified Its Clients According to Their

question 33

Essay

An investment firm has classified its clients according to their gender and the composition of their investment portfolios (primarily bonds, primarily stocks, or a balanced mix of bonds and stocks). The proportions of clients falling into the various categories are shown in the following table:
Portfolio Composition $$\begin{array} { | l | c | c | c | } \hline \text { Gender } & \text { Bonds } & \text { Stocks } & \text { Balanced } \\\hline \text { Male } & 0.18 & 0.20 & 0.25 \\\hline \text { Female } & 0.12 & 0.10 & 0.15 \\\hline\end{array}$$ One client is selected at random, and two events A and B are defined as follows:
A: The client selected is male.
B: The client selected has a balanced portfolio.
Are A and B independent events? Explain.

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Definitions:

Financial Data

Quantitative information about monetary transactions, including revenues, expenses, assets, and liabilities, used for analysis and decision-making.

Measurable Factors

Quantifiable elements or variables that can be used to gauge progress, performance, or success in achieving objectives.

Organizational Performance

A measure of how effectively and efficiently an organization achieves its objectives and fulfills its mission.

Organizational Comparisons

Involves analyzing and evaluating one organization against another to understand performance differences, strengths, weaknesses, or effectiveness in various areas.