Calculate the probabilities that a student owning a home


Problem:

Credit card companies have aggressively solicited new accounts from students who are new homeowners. Suppose that a sample of 150 new homeowners indicated the following information as to whether they possessed a Visa Card or an American Express Card.

American Express Card

Yes No Total

Yes 60 40 100

Visa Card No 20 30 50

Total 80 70 150

If a student is selected at random, what is the probability that

a. The new homeowner has a Visa credit card?

b. The new homeowner has an American Express Card?

c. The new homeowner has a Visa credit card and an American Express Card?

d. The new homeowner has neither a Visa credit card nor an American Express Card?

e. The new homeowner has a Visa credit card or an American Express Card.

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Accounting Basics: Calculate the probabilities that a student owning a home
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