Question

According to internal revenue records 1.65 of all household tax returns are audited.according to humane society 38% of all house holds own a dog . Assuming dog ownership and audits are independent events what is the probability of a randomly selected household to be audited and owns a dog

Answer 1

0.627%

Explanation:

Probability calculates the likelihood of an event occurring. The likelihood of the event occurring lies between 0 and 1. It is zero if the event does not occur and 1 if the event occurs.

For example, the probability that it would rain on Friday is between o and 1. If it rains, a value of one is attached to the event. If it doesn't a value of zero is attached to the event.

Probability of a randomly selected household to be audited and owns a dog = P(A ∩ B) = P(A) x P(B)

where A = household tax returns audited

B = percentage of households that own dogs

0.0165 x 0.38 = 0.627%