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 do not own 2 cars if annual household income is not over $25,000?
A) 0.45
B) 0.70
C) 0.12
D) 0.18

Question

Quizplus · Accepted Answer

Using Bayes' theorem and the given probabilities, the probability that residents do not own 2 cars if income is not over $25,000 is calculated as 0.45.

According to a Survey of American Households, the Probability That