A Market Study Taken at a Local Sporting Goods Store $\cap$

question 46

Essay

A market study taken at a local sporting goods store showed that of 20 people questioned,6 owned tents,10 owned sleeping bags,8 owned camping stoves,4 owned both tents and camping stoves,and 4 owned both sleeping bags and camping stoves.
Let:
Event A = owns a tent
Event B = owns a sleeping bag
Event C = owns a camping stove
and let the sample space be the 20 people questioned.
a.Find P(A), P(B), P(C), P(A $\cap$ C), P(B $\cap$ C).
b.Are the events A and C mutually exclusive? Explain briefly.
c.Are the events B and C independent events? Explain briefly.
d.If a person questioned owns a tent, what is the probability he also owns a camping stove?
e.If two people questioned own a tent, a sleeping bag, and a camping stove, how many own only a camping stove? In this case is it possible for 3 people to own both a tent and a sleeping bag, but not a camping stove?

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Definitions:

Market Index

A statistical measure which calculates changes in a representative group of individual securities to provide an overall view of the market or its segment’s performance over time.

Trading Volume

The total number of shares or contracts traded for a particular security or market during a specified period.

Loss Aversion

A psychological principle stating individuals prefer avoiding losses to acquiring equivalent gains.

Regret Avoidance

A cognitive process that leads investors to make decisions in a way that minimizes the regret they might feel from taking or not taking certain actions.