Thursday, July 21, 2011

Mutual fund probability question?

A mutual fund company offers a large number of funds. The funds have been classified by their performance over the past five year. The top 30% are designated "High", the middle 40% "Medium" and the lower 30% "Low". Of the High-performing funds, 70% require an investment fee, while the other 30% do not. Of the Medium funds, 50% require a fee, and for the Low funds, 20% require a fee. (20 points) What is the probability that a fund selected at random will be High and will not require a fee? (Show your work.)

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