Question

If you know that CAPMAS (Central Agency for Public Mobilization and Statistics), which is the National Statistical Office of Egypt, regularly announce the Households Income Expenditure and Consumption (HIECS) survey. HIECS I the survey that is used to estimate the households’ income and their expenditure, as well as other parameters. The following table provides the distribution of the randomly selected 25 thousand Households across different annual expenditure categories in 2018.

Annual Expenditure Categories	Number of Households (million)
Less than L.E. 17,000	3720
L.E. 17,000 to L.E. 32,000	12275
L.E. 32,000 to L.E. 67,000	7560
L.E. 67,000 and more	1375

(A) What is the probability that households in Egypt have an annual expenditure of less than L.E. 32,000? (Round answer to 2 decimal places) ...

(B) What is the probability that households in Egypt have an annual expenditure between L.E. 17,000 and L.E. 67,000? (Round answer to 2 decimal places) ...

(C) What is the probability that households in Egypt have an annual expenditure greater than L.E. 32,000? (Round answer to 2 decimal places) ...

Answer 1

Answer: If you know that CAPMAS (Central Agency for Public Mobilization and Statistics), which is the National Statistical Office of Egypt, regularly announce the Households Income Expenditure and Consumption (HIECS) survey. HIECS I the survey that is used to estimate the households’ income and their expenditure, as well as other parameters.

Solution:

Annual Expenditure Category	Number of households (million)
Less than L.E. 17,000	3720
L.E 17,000 to L.E. 32,000	12275
L.E. 32,000 to L.E. 67,000	7560
L.E. 67,000 and more	1375
Total	24930

(A) the probability that households in Egypt have an annual expenditure of less than L.E. 32,000.

P(less than L.E. 32,000) = (3720 + 12275)/24930

P(less than L.E. 32,000) = 0.6416

Therefore, the probability that households in Egypt have an annual expenditure of less than L.E. 32,000 is 0.6416.

(B) the probability that households in Egypt have an annual expenditure between L.E. 17,000 and L.E. 67,000?

P(between L.E. 17,000 to L.E. 67,000)

= (12275 + 7560)/24930

= 0.7956

Therefore, the probability that households in Egypt have an annual expenditure between L.E. 17,000 and L.E. 67000 is 0.7956.

(C) the probability that households in Egypt have an annual expenditure greater than L.E. 32,000?

P(greater than L.E. 32,000) = 1375/24930

P(greater than L.E. 32,000) = 0.0552

Therefore, the probability that households in Egypt have an annual expenditure greater than L.E. 32,000 is 0.0552.

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