Question

1. A study of 200 advertising firms revealed their income after taxes:

•Income after Taxes
•Number of Firms
*Under $1 million=95
$1 million to $20 million=74
$20 million or more=31
What is the probability an advertising firm selected at random has under $1 million or
$1 million to $20 million in income after taxes?

Answer 1

Explanation:

To find the probability of an advertising firm selected at random having under $1 million or $1 million to $20 million in income after taxes, we need to add the number of firms in each of these two categories and divide the result by the total number of firms.

Number of firms with under $1 million in income after taxes = 95

Number of firms with $1 million to $20 million in income after taxes = 74

Total number of firms = 95 + 74 + 31 = 200

Therefore, the probability of an advertising firm selected at random having under $1 million or $1 million to $20 million in income after taxes is:

(95 + 74) / 200 = 0.845

So the probability is 0.845 or 84.5%.