Joint, marginal and conditional probabilities.
This contingency table shows average yield (rows) and average duration (columns) for 38 bond funds. For an at random chosen bond fund, find the possibility that:
a. The bond fund is long duration.
b. The bond fund has high yield.
c. The bond fund has high yield given that it is of short duration.
d. The bond fund is of short duration given that it has high yield.
Average Portfolio Duration
Yield

Short (D1)

Intermediate (D2)

Long (D3)

Row Total

Small (Y1)

8

2

0

10

Medium (Y2)

1

6

6

13

High (Y3)

2

4

9

15

Column Total

11

12

15

38
