4.70 Education and income. Call a household prosperous if its income exceeds $10

Question

4.70 Education and income. Call a household prosperous if its income exceeds $100,000. Call the household educated if at least one of the householders completed college. Select an American household at ran- dom, and let A be the event that the selected household is prosperous and B the event that it is educated. According to the Current Population Survey, P(A) = 0.138, P(B) = 0.261, and the probability that a household is both pros- perous and educated is P(A and B) = 0.082. What is the probability P(A or B) that the household selected is either prosperous or educated?

Explanation / Answer

Solution :

   We are given that : A be the event that the selected household is prosperous and B be the event that selected household is educated. P(A)=0.138, P(B) = 0.261 and P( A and B) = 0.082

and we have to find :

The probability that the household selected is either prosperous or educated .

That is : P( A or B) =...............?

Thus we use following formula called as Addition rule of probability :

P( A or B) = P(A) + P(B) - P( A and B)

P( A or B) = 0.138 + 0.261 - 0.082

P( A or B) = 0.317

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.