Question

WLD Incorporated, a national data-collection agency, estimates that % of all customers at home warehouse stores (in the United States) own their own home. WLD also estimates that % of all home warehouse customers have lived at their current address for less than five years, and that % of all home warehouse customers both own their own home and have lived at their current address for less than five years. Using these estimates, what is the probability that a randomly selected home warehouse customer owns her own home or has lived at her current address for less than five years (or both)?

Answer 1

Answer: Our required probability is 0.62=62%.

Explanation:

Since we have given that

Let A be the event that all customers at home warehouse stores own their own home.

Let B be the event that all customers at home warehouse have lived at their current address for less than 5 years.

P(A) = 54% = 0.54

P(B) = 34% = 0.34

P(A∪B) = 26% = 0.26

We need to find the probability that a randomly selected home warehouse customer owns her own home or has lived at her current address for less than five years.

So, P(A∪B) is given by

`P(A\cup B)=P(A)+P(B)-P(A\cap B)\\\\P(A\cup B)=0.54+0.34-0.26\\\\P(A\cup B)=0.88-0.26\\\\P(A\cup B)=0.62`

Hence, our required probability is 0.62=62%.