The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be
0)74. The probability that house sales or interest rates will go up during the next 6 months is
Estimated to be 0.89. The probability that house sales will increase but interest rates will not
During the next 6 months is:
A) 0.065
B) 0.15
C) 0.51
D) 0.89

Question

Quizplus · Accepted Answer

The probability of house sales increasing but interest rates not increasing is calculated by subtracting the probability of both events happening from the probability of house sales increasing: P(Sales increase and Interest rates not increase) = P(Sales increase) - P(Sales increase and Interest rates increase) = 0.25 - (0.89 - 0.74) = 0.15.

The Probability That House Sales Will Increase in the Next