THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 201

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The joint probabilities shown in a table with two rows,A₁ and A₂,and two columns,B₁ and B₂ are as follows: P(A₁ ∩ B₁) = 0.10,P(A₁ ∩ B₂) = 0.30,P(A₂ ∩ B₁) = 0.05,P(A₂ ∩ B₂) = 0.55
-What is P(A₂ |B₁) ,rounded to two decimals?

• A)0.33
• B)0.35
• C)0.65
• D)0.67

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Definitions:

Deposits

Funds placed into banking institutions for safekeeping. These can be made into various types of accounts including savings, checking, and money market accounts.

Effective Rate

The actual interest rate an investor receives after the effects of compounding interest are taken into account.

Compounding Interval

The period of time at the end of which interest is added to the principal balance of an investment or loan.

Interest

The charge for borrowing money or the return on invested capital, generally expressed as a percentage rate.