CEO Paid More CEO Paid Less
Than $1 Million Than $1 Million Total
Shareholders made money 2 11 13
Shareholders lost money 4 3 7
Total l 6 14 20
If a company is randomly selected from the list of 20 studied, what is the probability?
a. the CEO made more than $1 million?
b. the CEO made more than $1 million or the shareholders lost money?
c. the CEO made more than $1 million given the shareholders lost money?
d. of selecting 2 CEOs and finding they both made more than $1 million?
The solution provides step by step method for the calculation of probabilities and conditional probabilities. Formula for the calculation and Interpretations of the results are also included.