The probability that house sales will increase in the next 6 months is estimated to be 0.25.The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74.The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89.The probability that both house sales and interest rates will increase during the next 6 months is:
A)0.10
B)0.185
C)0.705
D)0.90

Question

Quizplus · Accepted Answer

The probability that both events happen is found by adding the probabilities of each event and subtracting the probability of either event happening: 0.25 + 0.74 - 0.89 = 0.10.

The Probability That House Sales Will Increase in the Next