Performance/Sector BioTech IT
Positive 23% 17%
Negative 7% 53%
The table above displays data on the composition and performance of the Massachusetts Bubble Growth (MBG) technology stock fund over the last year. The table includes data on the distribution of stocks in the fund by technology sector (information technology (IT) or biotechnology) and by last year's "performance" (positive or negative net change in share price over the last year).
What is the conditional probability that an MBG stock had a positive change in share price, given that it is an IT stock?
None of the above
This solution is comprised of detailed step-by-step calculation of the given problem in EXCEL and provides students with a clear perspective of the underlying concept.