Alison has been hired to sell two different homes on the same street that two houses apart. She predicts that Home A has a 75% chance in selling on the first week of being listed, whereas Home B is in lesser condition and has a 30% probability. There is also a 20% chance both homes will not sell on the first week of it being listed. What is the probability that house A does not sell given that house B does not sell due to it's poor condition?
A) 0.267
B) 0.286
C) 0.250
D) 0.700

Question

Quizplus · Accepted Answer

The probability that house A does not sell given that house B does not sell is calculated using conditional probability. The formula for conditional probability is P(A|B) = P(A and B) / P(B). Given that there's a 20% chance both homes will not sell, and house B has a 70% chance of not selling (100% - 30% = 70%), the probability that house A does not sell given house B does not sell is 0.20 / 0.70 = 0.286.

Alison Has Been Hired to Sell Two Different Homes on the Same