An Investment Firm Has Classified Its Clients According to Their

question 96

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:

Mind Functions

Cognitive, affective, and conative processes and activities carried out by the brain, such as thinking, feeling, and willing.

Edward Titchener

A psychologist known for developing structuralism and for his method of introspection.

John Watson

An American psychologist who is considered one of the founders of behaviorism, emphasizing the study of observable behavior and rejecting introspection.

Structuralism

A theoretical paradigm in psychology and sociology that emphasizes the importance of understanding the structure of the mind or society, focusing on the configuration of its elements.