Your company provides services to three different industries: automotive,construction,and financial services.These services can be either on a yearly or on a monthly contract.The cross-tabulation table below summarizes this information: If a client is randomly selected,what is the likelihood that it will be from the financial industry or on a monthly contract?
A) 26.6%
B) 42.3%
C) 51.8%
D) 65.5%
E) 67.5%

Question

Your company provides services to three different industries: automotive,construction,and financial services.These services can be either on a yearly or on a monthly contract.The cross-tabulation table below summarizes this information:  If a client is randomly selected,what is the likelihood that it will be from the financial industry or on a monthly contract?
A) 26.6% 
B) 42.3% 
C) 51.8% 
D) 65.5% 
E) 67.5%

Quizplus · Accepted Answer

To calculate the likelihood that a client will be from the financial industry or on a monthly contract, we need to add up the number of clients who fall into one or both categories. According to the table:

- 20% of clients are from the financial industry (90 out of 450)
- 55% of clients are on a monthly contract (495 out of 900)

To avoid double-counting, we need to subtract the number of clients who are both from the financial industry and on a monthly contract. According to the table:

- 9% of clients are both from the financial industry and on a monthly contract (40 out of 450)

So, the total number of clients who are either from the financial industry or on a monthly contract is:

90 + 495 - 40 = 545

And the total number of clients in the sample is:

450 + 300 + 150 = 900

Therefore, the likelihood that a client will be from the financial industry or on a monthly contract is:

545 / 900 = 0.6055

Multiplying by 100% to express this as a percentage, we get:

60.55%, which is closest to option E: 67.5% (rounded to the nearest whole number).

Your Company Provides Services to Three Different Industries: Automotive,construction,and Financial