Question

According to a survey of American 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 __________?

Answer 1

12%

Explanation:

The probability that the residents of a household do not own two cars and have an income over $50,000 a year is 100% subtracted by the probability of owning two cars and having an income over $50,000(P(2∩50+) and the probability of not having an income over $50,000 (P(50-))

`P = 1 - P(2\cap 50+) - P(50-)\\P = 1 - (0.6*0.7) - (1-0.6)\\P=1-0.48-0.40\\P=0.12`

Therefore, the probability that the residents of a household do not own two cars and have an income over $50,000 a year is 12%