The information in the folowing two way contingency table relates the make of a

Question

The information in the folowing two way contingency table relates the make of a new light vehicle (American, Asian, European) and the age of the person

1) The probability that a randomly seleted new light vehicle is a European make is about?  

a) 0.45

b) 0.11

c) 0.23

d) 0.32

e) 0.18

2) The probability that a randomly seleted new light vehicle is a European make, given that the purchaser is 65 and older, is about?

a) 0.01

b) 0.11

c) 0.05

d) 0.23

e) 0.18

18-34 35-64 65 and older American 0.06 0.31 0.10 Asian 0.05 0.30 0.07 European 0.01 0.05 0.05

Explanation / Answer

The information in the folowing two way contingency table relates the make of a new light vehicle (American, Asian, European) and the age of the person.

The complete contingency table is,

1) The probability that a randomly seleted new light vehicle is a European make is about?

That is we have to find P(randomly seleted new light vehicle is a European make) = 0.11

Option b) is correct.

2) The probability that a randomly seleted new light vehicle is a European make, given that the purchaser is 65 and older, is about?

That is here we have to find P(a randomly seleted new light vehicle is a European make / he purchaser is 65 and older) = P(a randomly seleted new light vehicle is a European make and he purchaser is 65 and older) / P(he purchaser is 65 and older)

P(a randomly seleted new light vehicle is a European make and he purchaser is 65 and older) = 0.05

P(he purchaser is 65 and older) = 0.22

P(a randomly seleted new light vehicle is a European make / he purchaser is 65 and older) = 0.05/0.22 = 0.23

Option d) is correct.

18-34 34-64 65 and older total American 0.06 0.31 0.1 0.47 Asian 0.05 0.3 0.07 0.42 European 0.01 0.05 0.05 0.11 total 0.12 0.66 0.22 1

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