# Random Investor and Security Ownership

It is estimated 30% of all adults in United States invest in stocks and that 83% of U.S. adults have investments in fixed income instruments (savings accounts, bonds, etc.). It is also estimated that 25% of U.S. adults have investments in both stocks and fixed income instruments.

(a) What is the probability that a randomly chosen U.S. adult invests in stocks, given that s/he invests in fixed income instruments?

(b) What is the probability that a randomly chosen stock investor also invests in fixed income instruments?

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Recall that to calculate conditional probability, we simply need to use ...

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The full solution includes details on how to apply Bayes Law to solve these problems.

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