Question

In: Statistics and Probability

In a recent survey of homes in a major Midwestern city, 10% of the homes have...

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?

Solutions

Expert Solution

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 .


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