Financial Risk Manager Part 1

Explanation

We need to find the percentage of patients NOT considered high risk for a heart attack.

Given:

• P(High Cholesterol) = 25% = 0.25
• P(High Blood Pressure) = 30% = 0.30
• P(Both) = 10% = 0.10

Step 1: Find patients considered high risk Patients are high risk if they have either high cholesterol OR high blood pressure.

Using the probability formula for union of two events: $P(A \cup B) = P(A) + P(B) - P(A \cap B)$

$P(\text{High Risk}) = 0.25 + 0.30 - 0.10 = 0.45$

So 45% of patients are considered high risk.

Step 2: Find patients NOT considered high risk $P(\text{Not High Risk}) = 1 - P(\text{High Risk})$ $P(\text{Not High Risk}) = 1 - 0.45 = 0.55$

Therefore, 55% of patients are NOT considered high risk for a heart attack.

Answer: C (55%)