In: Statistics and Probability
In a recent survey of homes in a major Midwestern city, 10% of the homes have a fax machine and 55% have a personal computer. Suppose 7% of the homes with a fax machine also have a personal computer. What is the probability that a home has a fax machine or a personal computer?
GIVEN:
Probability of homes that have a fax
machine 
Probability of homes that have a
personal computer 
Probability of homes with a fax
machine also have a personal computer
FORMULA USED:
The formula for the probability that a home has a fax machine or a personal computer is given by,

CALCULATION:
Let us calculate
,
Given that the probability of homes
with a fax machine also have a personal computer
Using the formula for conditional
probability, let us calculate
,




Now the probability that a home has a fax machine or a personal computer is given by,



Thus the probability that a
home has a fax machine or a personal computer is
.