Question

advising services scenarios
a financial planner is examinig the portfolio choices of client based on their
risk preferences the planner has organized the data into a tow - way table
showing the number of clients who have chosen either a high - risk or a low -
risk portfolio and whether they opted for additional investment advising
services
using the table provided, what is the marginal relative frequency of clients
who opted out of advising services?

Explanation:

Step1: Recall the formula for marginal relative frequency

Marginal relative frequency = \(\frac{\text{Row/Column Total}}{\text{Grand Total}}\)

Step2: Identify the values from the table

The number of clients who opted out of advising services (column total) is \(200\), and the grand total of clients is \(500\)

Step3: Calculate the marginal relative frequency

\(\frac{200}{500}= 0.4\)

Answer:

\(0.4\)