Question

The probability that a student will take loans to pay for their undergraduate education is 0.85, and the probability that a student will go to graduate school given that the student took loans to pay for their undergraduate education is 0.13. What is the probability that a student will go to graduate school and take loans to pay for their undergraduate education? Round your answer to three decimal places.

Answer 1

The probability that a student will go to graduate school and take loans to pay for their undergraduate education is P=0.111.

Explanation:

We know that:

• The probability that a student will take loans to pay for their undergraduate education is 0.85

`P(L)=0.85`.

• The probability that a student goes to graduate school, given that the student took loans to pay for their undergraduate education, is 0.13.

`P(G|L)=0.13`

What is the probability that a student will go to graduate school and take loans to pay for their undergraduate education?

Out of the population of students, a proportion of 0.85 takes loans for undergraduate studies. Out of this, a proportion of 0.13 goes to graduate school.

This probability can then be calculated as:

`P(G\&L)=P(L)\cdot P(G|L)=0.85\cdot0.13=0.1105`