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 house sales will increase but interest rates will not during the next 6 months is:
A)0.065
B)0.15
C)0.51
D)0.89

Question

Quizplus · Accepted Answer

We can use the formula P(A and not B) = P(A) - P(A and B)
Let A be the event that house sales will increase in the next 6 months and B be the event that interest rates on housing loans will go up in the same period.
P(A and B) = 0.25 x 0.74 = 0.185
P(A) = 0.25
P(A or B) = 0.89
Therefore, P(A and not B) = 0.25 - 0.185 = 0.065, which corresponds to choice B.

The Probability That House Sales Will Increase in the Next