According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $50,000 is 80%. Of the households surveyed, 60% had incomes
Over $50,000 and 70% had 2 cars. The probability that the residents of a household own 2 cars
And have an income over $50,000 a year is:
A) 0.12
B) 0.18
C) 0.22
D) 0.48

Question

Quizplus · Accepted Answer

The probability that a household owns 2 cars and has an income over $50,000 is found by multiplying the probability of having an income over $50,000 (60% or 0.6) by the conditional probability of owning 2 cars given that income (80% or 0.8). Thus, 0.6 * 0.8 = 0.48.

According to a Survey of American Households, the Probability That