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 do not own 2 cars if annual
Household income is not over $50,000 is:
A) 0.12
B) 0.18
C) 0.45
D) 0.70

Question

Quizplus · Accepted Answer

The probability that the residents do not own 2 cars if annual household income is not over $50,000 is 1 - the probability that the residents own 2 cars if annual household income is over $50,000, which is 1 - 0.80 = 0.20. Since 40% of the households surveyed had incomes not over $50,000, the probability that the residents do not own 2 cars if annual household income is not over $50,000 is 0.20 * 0.40 = 0.08.

According to a Survey of American Households, the Probability That