Question

An electric company has to track on-time payments and late payments for each customer monthly. It is impossible for a customer to pay on-time and late each month. If the probability that a customer pays on-time each month is 0.55, and the probability that a customer pays late or on-time each month is 0.82, what is the probability that a customer pays late each month

Answer 1

The probability that a customer pays late each month is P(B) = 0.27

Explanation:

Let P( A ) be the probability that the customer pays on time and the value is 0.55

Let P( B ) be the probability that a customer pays late each month

So

The probability that a customer pays late or on-time each month is P(A u B) and the value is 0.82

The probability that a customer pays on-time and late each month is P(A n B) and the value is zero ( 0 ) given that it is impossible

Now The probability that a customer pays late or on-time each month is mathematically represented as

P(A u B) = P(A) + P(B) - P(A n B)

=> 0.82 = 0.55 + P( B ) - 0

=> P(B) = 0.27