Question
More and more households are struggling to pay utility bills given a shaky economy and high heating costs (The Wall Street Journal, February 14, 2008). Particulary hard hit are households with homes heated with propane or heating oil. Many of these households are spending twice as much to stay warm this winter compared to those who heat with natural gas or electricity. A representative sample of 500 households was taken to investipate f the type of heting influences whether or not a household is delinquent in paying its ubility bil. The following table reports the resuts Type of Heating DelinquentNatural 15 20 10 15 50 20 240130 a. What is the probablity that a randomy salected househoid uses heating ol? (Round your answer to 2 decimal places.) b. What is the probabity that a randomly selected househald is dainguant in paying its utiity bil? (Round your anewer to 2 decimal places ) Probabilty o. What is the probabiity that a tandomity selected househaid uses heating ail and is deinquent in paying ts ubity bar? Round your answer to 2 decimal places) d. Given thar a househoid uses heating ol, what is the probabl IRound your intermadiate calculations and final answer to 4 decimal placex) y hat t is deinquent in payi'g As ustty MacBook A 2 4 6
Explanation / Answer
a) P (Heating Oil ) = 35/500 = 0.07
B) P( Delinquent in Paying bills) = (50+20+15+10)/500 = 95/500 = 0.19
C) P( Delinquent in Paying bills and Heating) = 15/500 = 0.03
D) P ( Delinquent in Paying bills / Heating) = 15/35 = 0.43
