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 neither house sales nor interest rates will increase
During the next 6 months is:
A) 0.11
B) 0.195
C) 0.89
D) 0.90

Question

Quizplus · Accepted Answer

The probability that neither house sales nor interest rates will increase during the next 6 months is 1 minus the probability that either house sales or interest rates will go up during the next 6 months. So, the probability that neither house sales nor interest rates will increase during the next 6 months is 1 - 0.89 = 0.11.

The Probability That House Sales Will Increase in the Next