Question

Mr. Ahmed wants to build a house this year. He applied for a bank loan. The probability that he will get it is 2/3. if he will get the bank loan, the probability that he will build the house is ¾. However, if he will not get the bank loan, the probability that he will build the house is ¼. What is the probability that Mr. Ahmed will build a house this year?

Answer 1

0.58

Explanation:

The probability of all possible outcomes, that is, the probability of getting the loan and not getting the loan is 1.

The probability of getting the loan=2/3

Probability of not getting the loan=1-2/3=1/3

The probability of building a house if he gets the loan=3/4

The probability of building the house without the loan=1/4

Probability of building the house = (He gets the loan AND he builds it) or (he doesn't get the loan AND he builds it)

Probability of building the house =(2/3*3/4)+(1/3*1/4)= 0.58