According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that the residents of a household do not own 2 cars and have an income over $25,000 a year?
A) 0.18
B) 0.48
C) 0.22
D) 0.12

Question

Quizplus · Accepted Answer

The probability that a household has an income over $25,000 and owns 2 cars is 0.6 * 0.8 = 0.48. The probability that a household has 2 cars is 0.7. Therefore, the probability that a household has an income over $25,000 and does not own 2 cars is 0.6 - 0.48 = 0.12.

According to a Survey of American Households, the Probability That