Question

Suppose that a recent poll of American households about car ownership found that for households with a car, 39% owned a sedan, 33% owned a van, and 7% owned a sports car. Suppose that three households are selected randomly and with replacement. What is the probability that all three randomly selected households own a van? (Round to the nearest thousandth) Select one: a. 0.036 b. 0.059 c. 0.003 d. 0.964

Answer 1

Answer: Option 'a' is correct.

Explanation:

Since we have given that

Probability of owned a sedan = 39%

Probability of owned a van = 33%

Probability of owned a sports car = 7%

n = 3

We need to find the probability that all three randomly selected households own a van.

So, Probability of getting all 3 own a van is given by

`(0.33)^3\\\\=0.035937\\\\\approx 0.036`

Hence, Option 'a' is correct.