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What is the probability that a randomly selected subprime mortgage in the state during November 2008 was not current? (Round your answer to two decimal places.)

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Complete question is;

The attached chart shows the (approximate) total number of subprime home mortgages in a state in November 2008, broken down into four categories.

What is the probability that a randomly selected subprime mortgage in the state during November 2008 was not current? (Round your answer to two decimal places.)

Answer:

Probability that the one randomly selected was not current = 0.36

Explanation:

From the attached image, we can see that the four mortgage categories are mutually exclusive. This means that none of the 4 status depends on any other.

From the image attached;

Total number of subprime mortgages = 196,280

Number of current mortgages = 126,330

Thus;

Probability of a randomly selected subprime mortgage being current = 126330/196280 = 0.64

Then;

Probability that the one randomly selected was not current = 1 - 0.64

Probability that the one randomly selected was not current = 0.36

What is the probability that a randomly selected subprime mortgage in the state during-example-1
User Rbginge
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