Max Sandlin is exploring the characteristics of stock market investors. He found that sixty percent of all investors have a net worth exceeding $1,000,000; 20% of all investors use an online brokerage; and 10% of all investors a have net worth exceeding $1,000,000 and use an online brokerage. An investor is selected randomly, and E is the event "net worth exceeds $1, 000, 000," and O is the event "uses an online brokerage." P(O|E) = ____________.

The answer is .17 however how do you get to that?

Question

Max Sandlin is exploring the characteristics of stock market investors. He found that sixty percent of all investors have a net worth exceeding $1,000,000; 20% of all investors use an online brokerage; and 10% of all investors a have net worth exceeding $1,000,000 and use an online brokerage. An investor is selected randomly, and E is the event "net worth exceeds $1, 000, 000," and O is the event "uses an online brokerage." P(O|E) = ____________.

The answer is .17 however how do you get to that?

kropot72 · Answer

P(E) = 0.6
The percentage of all investors that use an online brokerage and do not have a net worth exceeding $1,000,000 = 20% - 10% = 10%
P(O) = 0.1
$$P(O/E)=\frac{0.1}{0.6}=1.7rounded$$