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 do not 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 has an income over $50,000 and does not own 2 cars is calculated as follows: P(Income > $50,000 and not 2 cars) = P(Income > $50,000) * P(not 2 cars | Income > $50,000) = 0.60 * (1 - 0.80) = 0.60 * 0.20 = 0.12.

According to a Survey of American Households, the Probability That