According to a survey of Australian households,the probability that the residents own two cars if annual household income is over $50,000 is 80%.Of the households surveyed,60% had incomes over $50,000 and 70% had two cars.
- The probability that the residents of a household do not own two 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 residents own two cars given an income over $50,000 is 80%, meaning the probability they do not own two cars given this income is 20% (100% - 80%). Since 60% of households have incomes over $50,000, the probability that a household has an income over $50,000 and does not own two cars is 60% of 20%, which is 0.6 * 0.2 = 0.12.

According to a Survey of Australian Households,the Probability That the Residents