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A utility company offers a lifeline rate to any household whose electricity usag

ID: 3320740 • Letter: A

Question

A utility company offers a lifeline rate to any household whose electricity usage falls below 240 k Wh during a particular month. Let A denote the event that a randomly selected household in a certain community does not exceed the lifeline usage during January, and B be the analogous event for the month of July. Suppose that the probability of event A is 0.8 and that of B is 0.7 and P(An B)-0.6. +13129 666654 wha tsopp 2. (a) Find the probability that the household exceeds the lifeline usage during January. Answer PLIE (b) Find the probability that the household does not exceed the lifeline usage either during January or July Answer P(AUBE (c) Find the probability that the household exceeds the lifeline usage during January and July di find-the p robabilily that the houschold Answer Pán)ol (lire usay dwing January does not sencedthe ife line usage during july aven mat hry did not exceeds the P (BIA): 0.75 not exceeds Hu dire usase duri

Explanation / Answer

A)
P(A) = 0.8
P(A') = 1 - 0.8 = 0.2

B)
P(A or B) = P(A) + P(B) - P(A and B)
P(A or B) = 0.8 + 0.7 - 0.6
P(A or B) = 0.9

C)
P(A' and B') = P(A or B)'
= 1 - 0.9 = 0.1

d)
P(B|A) = P(A and B)/P(A)
= 0.6/0.8 = 0.75

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