Types of bonds are divided into three categories: good risk, medium risk, and poor risk. Assume that of a total of 13,838 bonds, 7,035 are good risk, 1,388 are medium risk, and the rest are poor risk. One bond is chosen risk? Write only a number as your answer. Round to two decimal places (for example: 0.43). Do not write as a percentage.
To determine the probability of selecting a bond of a specific risk category, we first need to calculate the total number of poor risk bonds.
Given that there are 13,838 total bonds, and the sum of the good risk and medium risk bonds is 7,035 + 1,388 = 8,423, we can find the number of poor risk bonds by subtracting this sum from the total number of bonds:
Number of poor risk bonds = Total bonds - (Good risk bonds + Medium risk bonds)
Number of poor risk bonds = 13,838 - 8,423
Number of poor risk bonds = 5,415
Now, to find the probability of selecting a poor risk bond, we divide the number of poor risk bonds by the total number of bonds:
Probability of selecting a poor risk bond = Number of poor risk bonds / Total bonds
Probability of selecting a poor risk bond = 5,415 / 13,838
Probability of selecting a poor risk bond ≈ 0.39 (rounded to two decimal places)
Therefore, the probability of selecting a bond that is poor risk is approximately 0.39.