what is the probability that a family has two cars and an income over $35000?

Question

survey data showed that 63% of families had incomes over $35,000 and 63% had two cars.

according to the survey, the probability that a family has two cars if their income is over $35000 is 0.72

what is the probability that a family has two cars and an income over $35000?

Answer 1

Solution:

Note that you are dealing with a conditional probability problem.

Information given: P(Income>35)= 0.63
P(Two cars) = 0.63
P(Two cars given that I > 35) = 0.72

P(Two cars "and" Income > 35) = P(Conditional) * P(I > 35)

P = 0.72*0.63 = 0.4536

Good Luck

Answer 2

The Two cars part of the equation can be misleading.
I have vintage cars that aren't worth much on the open market. But I drive them year after year after year.
Some people that are frugal, would rather spend a lump sum ,say $3500 dollars on a used motor from an engine dealer and just keep using the same car body over and over. Then take the money that you saved from not having
to spend 25000 dollars (on car and interest pmt.) and invest it in A house that is for sale from a divorce or bankruptcy.

Answer 3

My family's income is over $50,000 per year, and we don't have any cars. We just can't afford the payments and insurance and gas.

Answer 4

.72 is the only answer you allow with the limited data you gave but the implication is that this is not the correct answer

Answer 5

The probablility is 0.63*0.72 or about 0.45

Answer 6

i agree with slider

Answer 7

you answered your own question

Answer 8

NOT GOOD!