The Table Below Shows the Soft Drinks Preferences of People

question 140

Multiple Choice

The table below shows the soft drinks preferences of people in three age groups. $$\begin{array} { l c c c } & \text { Cola } & \text { Root Beer } & \text { Lemon-lime } \\\text { Under 21 years of age } & 40 & 25 & 20 \\\text { Between 21 and 40 } & 35 & 20 & 30 \\\text { Over 40 years of age } & 20 & 30 & 35\end{array}$$ If one of the 255 subjects is randomly selected, find the probability that the person drinks root beer given that they are over 40.

• A) \(\frac { 2 } { 5 }\)
• B) \(\frac { 2 } { 17 }\)
• C) \(\frac { 6 } { 17 }\)
• D) None are correct

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Definitions:

Capital Asset Pricing Model

An economic model used to determine the theoretical expected return of an asset, considering its risk relative to the market as a whole.

Unsystematic Risk

The risk that is unique to a specific company or industry.

Systematic Risk

The danger that affects the whole market or a specific market segment, referred to as market risk, is unremovable by diversifying investments.

Business-Specific Risk

Refers to the uncertainties faced by a company due to the industry it operates in or the nature of its business operations.