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Social networking Web sites in the United Kingdom. In the United States, MySpace and Facebook are considered the two most popular social networking Websites. In the United Kingdom (UK), the competition for social networking is between MySpace and Bebo. According to Nielsen/ Net Ratings (April 2006), 4% of UK citizens visit MySpace, 3% visit Bebo, and 1% visit MySpace and Bebo.

a. Draw a Venn diagram to illustrate social networking sites in the United Kingdom.

b. Find the probability that a UK citizen visits either the MySpace or Bebo social networking site.

c. Use your answer to part b to find the probability that a UK citizen does not visit either social networking site.

Short Answer

Expert verified
  1. Fig.1 Venn diagram (shown in step 1)
  2. 0.06
  3. 0.94

Step by step solution

01

Make a Venn diagram to show how social networking sites are used in the United Kingdom.

Venn diagrams are a highly effective graphical approach for representing the sample space S and its subsets. According to net ratings, 4% of individuals frequent MySpace, 3% visit Bebo, and 1% visit MySpace and Bebo. Let A represent the event in which citizens visit MySpace and B represent the event in which citizens visit Bebo.

Therefore,

P(C)=4%=4100=0.04

P(B)=3%=3100=0.03

P(C)=1%=1100=0.01

The Venn diagram below represents the country's use of social networking sites:

02

Find the probability of either the MySpace or Bebo

The probability that a person will visit either MySpace or Bebo social networking sites is denoted by P(AB), and it is determined using the additive rule of probability:

P(AB)=P(A)+P(B)P(AB)=0.04+0.030.01=0.06

Hence, the required probability is 0.06.

03

Calculate the probability that a UK citizen will not visit each social networking site using your answer to component b

The chance of a citizen not visiting either social networking site is represented by the probability of the occurrence P(AB)

P(AB)C=1P(AB)=1-0.06=0.94

Hence, the required probability is 0.94.

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Most popular questions from this chapter

Who prepares your tax return? As part of a study on income tax compliance (Behavioral Research and Accounting, January 2015), researchers sampled 270 adults at a shopping mall and asked each: “Who usually prepares your tax return?” Their answers (and frequency of responses) are shown in the table (p. 170). Use the information in the table to estimate the probability that a randomly selected adult uses a friend, relative, or professional to prepare his or her income tax return.

Table for Exercise 3.16

Response

Frequency

You

100

Your spouse

16

Equally with spouse

7

Friend or relative

31

Professional help

114

Not required to file

2

TOTAL

270

Source: S. Bhattacharjee, K. Moreno, and D. Salbador, “The Impact of Multiple Tax Returns on Tax Compliance Behavior,” Behavioral Research and Accounting, Vol. 27, No. 1, January 2015 (from Table 1).

Consider two events A and B, withP(A)=.1,P(B)=.2,andP(AB)=0

a.Are A and B mutually exclusive?

b.Are A and B independent?

Drug testing in athletes.When Olympic athletes are tested for illegal drug use (i.e., doping), the results of a single positive test are used to ban the athlete from competition. Chance(Spring 2004) demonstrated the application of Bayes’s Rule for making inferences about testosterone abuse among Olympic athletes using the following example: In a population of 1,000 athletes, suppose 100 are illegally using testosterone. Of the users, suppose 50 would test positive for testosterone. Of the nonusers, suppose 9 would test positive.

  1. Given that the athlete is a user, find the probability that a drug test for testosterone will yield a positive result. (This probability represents the sensitivity of the drug test.)
  2. Given the athlete is a nonuser, find the probability that a drug test for testosterone will yield a negative result. (This probability represents the specificityof the drug test.)
  3. If an athlete tests positive for testosterone, use Bayes’s Rule to find the probability that the athlete is really doping. (This probability represents the positive predictive value of the drug test.)

Stock market participation and IQ.Refer to The Journal of Finance(December 2011) study of whether the decisionto invest in the stock market is dependent on IQ, Exercise3.46 (p. 182). The summary table giving the number ofthe 158,044 Finnish citizens in each IQ score/investment category is reproduced below. Again, suppose one of the citizens is selected at random.

IQ Score

Invest in Market

No Investment

Totals

1

2

3

4

5

6

7

8

9

893

1,340

2,009

5,358

8,484

10,270

6,698

5,135

4,464

4,659

9,409

9,993

19,682

24,640

21,673

11,260

7,010

5,067

5,552

10,749

12,002

25,040

33,124

31,943

17,958

12,145

9,531

Totals

44,651

113,393

158,044

Source:Based on M. Grinblatt, M. Keloharju, and J. Linnainaa, “IQ and Stock Market Participation,” The Journal of Finance, Vol. 66, No. 6, December 2011 (data from Table 1 and Figure 1).

a.Given that the Finnish citizen has an IQ score of 6 or higher, what is the probability that he/she invests in the stock market?

b.Given that the Finnish citizen has an IQ score of 5 or lower, what is the probability that he/she invests in the stock market?

c.Based on the results, parts a and b, does it appear that investing in the stock market is dependent on IQ? Explain.

Suppose the events B1,B2,B3 are mutually exclusive and complementary events, such thatP(B1)=0.2, P(B2)=0.4and P(B3)=0.5. Consider another event A such thatP(AB1)=P(AB2)=0.1andP(AB3)=0.2Use Baye’s Rule to find

a.P(B1A)

b.PB2A

c.role="math" localid="1658214716845" P(B3A)

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