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

Using the formula for the probability of the union of two events: P(A or B) = P(A) + P(B) - P(A and B), we can solve for P(A and B). Here, P(A) = 0.25, P(B) = 0.74, and P(A or B) = 0.89. Thus, P(A and B) = 0.25 + 0.74 - 0.89 = 0.10.

The Probability That House Sales Will Increase in the Next