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.27 .27 .25 18 Source: American Demograpbics December 1990, p. 14 Suppose that a

ID: 3041308 • Letter: #

Question

.27 .27 .25 18 Source: American Demograpbics December 1990, p. 14 Suppose that a single adult is randomly selected from among those listed in the survey. a If the proportion of college graduates in the surveyed group is .24, what is the probability b If the chosen adult has had some college, what is the probability that she does not believe If the proportion of adults in the surveyed group who have never been to college is 4 that the chosen adult will be a college graduate who does not believe the ad? the ad? what is the probability that the chosen adult will not have gone to college and believes the ad? [Hint: Entries in the table are the conditional probabilities of believing the ad, given the adult's level of educational attainment.] 318/ A recent survey of American businesses indicated that 27% maintain a parental-leave program for parents of newborn children. Of these, one-third offer some kind of salary continuation during the leave, and three-quarters continue to subsidize health care Journal of Accountancy, November 1990, p. 23). a What is the probability that a randomly chosen business offers parental leave with some form of salary continuation? b What is the probability that a randomly chosen business offers parental leave without continuing to subsidize health-care costs? In a survey involving 100 cars, each vehicle was classified according to whether or not it had antilock brakes and whether or not it had been involved in an accident in the past year.Suppose 3.19 that one of these cars is randomly selected for inspection. a What is the probability that the car has been involved in an accident in the past year? b What is the probability that the car has not been in an accident and has antilock brakes?

Explanation / Answer

3.18

a) P(offers parental leave with some form of salary continuation) = 0.27*1/3 = 0.09

b)  P(offers parental leave without continuing to subsidize health care cost)= 1-0.09 = 0.81