Question

Suppose that 45% of Individuals that live near the beach in California own an expensive home. Of those that own an expensive home 15% of them have a boat. Out of the individuals that do not have an expensive home that live near the beach, 4% of them have a boat. BH for beach expensive homeowner, BO for boat owner, and NBH for no expensive home.

Probability (BH) – 45%

Probability (BO / BH) – 15%

Probability (BO/ NBH) – 4%

What is the probability that an individual will own a boat? Show work.

What portion of Boat owners own an Expensive house? Show work.

Answer 1

Solution : Par (BH) = 45% 0.45 Po ( 80/81) = P (B0 and 8H) o.IS P (BH) 0.0675 03 P72(80 and BH): 0.15*0.45 {^ means NBH ,c} BHC. 0.04 P( 80/NBH )= P(30/B4) - P(80 and B4) P (BH) P(Bo and BHC) PCBO and BH ) =) 0.04. 2 - P(BH) P(BO) - PCBO and BH) PC00)- P(80 and 8H) = 0.04* 0.04*(1+0.45) P(30 and BH) = 0.0675 0.022 >) P(BO) -0.0675 29 P(80) 0.0 22+ 0.0675 - 0.0895

Proobability of indididi dual will own boad РСво) - 8.95% (@:) P (B9%80), 4(0H and co) P(BO) 0.0675 0.0895 a 0.754 2. Boat owners own an expensive house is 75.42 %