A survey revealed that 21.5% of the households had no checking account,66.9% had regular checking accounts,and 11.6% had NOW accounts.Of those households with no checking account 40% had savings accounts.Of the households with regular checking accounts 71.6% had a savings account.Of the households with NOW accounts 79.3% had savings accounts. The probability that a randomly selected household has no checking account and no savings account is:
A) 0.0860.
B) 0.1290.
C) 0.5330.
D) 0.1309.
E) 0.3430.

Question

Quizplus · Accepted Answer

To find the probability that a randomly selected household has no checking account and no savings account, we need to multiply the percentage of households with no checking account (21.5%) by the percentage of those households that have savings accounts (40%):

0.215 x 0.40 = 0.086

Therefore, the probability that a randomly selected household has no checking account and no savings account is 0.086 or 8.6%. Option B matches this result with 0.1290, which might be a rounding issue, but it is the closest possible answer.

A Survey Revealed That 21