Question

According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $50,000 is 80%. Of the households surveyed, 60% had incomes over $50,000 and 70% had 2 cars. The probability that the residents of a household own 2 cars and have an income over $50,000 a year is:________

Answer 1

Answer: 0.48

Step-by-step explanation:

The probability that the residents of a household own 2 cars and have an income over $50,000 a year can be calculated by;

= Probability that residents own 2 cars if annual household income is over $50,000 * probability of households earning more than $50,000

= P(Two cars I 50,000+) * P(50,000 +)

= 80% * 60%

= 0.48