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Probability: High Risk Apartments

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In a local town, there are three separate apartment blocks, A, B and C. Block A contains 10 apartments, of which two contain "High Risk" inhabitants. Block B contains eight apartments, with three occupied by "High Risk" inhabitants, and Block C contains 12 apartments, with four "High Risk" apartments.

Assume that an apartment in Block B was visited, and found to be a "High Risk" apartment. If the Fire Brigade now wishes to visit another apartment, again to be selected at random from all three blocks, what is the probability that the second flat will not be "High Risk"?

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The probability that the second flat will not be "High Risk" is the ratio of the number of remaining apartments that are not "High Risk" to the total number of remaining apartments. The reason why both of the numbers in the ratio include only the remaining apartments is that the Fire Brigade wishes to visit "another" apartment (that is, some apartment other than the one they have already visited).

Well, let's see how many apartments are ...

Solution Summary

The "formula" for the probability of the indicated outcome is provided. Then the individual components of that outcome are examined (and explained in detail), and are used to compute the answer.

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1) Five investment alternatives have the attached returns and standard deviations of returns. Using the coefficient of variation, rank the five alternatives from lowest risk to highest risk. (Attachment 4.doc)

Mr. Sam Golff desires to invest a portion of his assets in rental property. He has narrowed his choices down to two apartment complexes, Palmer Heights and Crenshaw Village. After conferring with the present owners, Mr Golff has developed the attached estimates of the cash flows for those properties.
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(Attachement 13.doc)

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