G|ven the fo||ow|ng cont|ngency tab|e

8 81 tota|
A 10 20 30
A1 20 40 60
1C1AL 30 60 90
What |s the probab|||ty of
a event A?
b event A'?
c event A and 8?
d event A or 8?
Less Lhan 30More Lhan 31oLal 49 8eferrlng Lo Lhe con
lalr 223 180 403 LhaL he or she
unfalr 280 320 600 a Lhlnks Lhe Lax code ls
1oLal 303 300 1003 b Lhlnks Lhe Lax code ls
c Lhlnks Lhe Lax code ls
49 d Lxplaln Lhe dlfference
a Lhlnks Lhe Lax code ls unfalr? 0S9701492S ConLlngency Lable
b Lhlnks Lhe Lax code ls unfalr and makes less Lhan 027860696S uS 1Ax
$30000? CCuL Less 1han $3000
c Lhlnks Lhe Lax code ls unfalr or makes less Lhan $30000? 087S621891 lalr 223 180 403
d Lxplaln Lhe dlfference ln Lhe resulLs ln (b) and (c)
b |mp||es to those peop|e on|y for whom both of
these th|ngs or events are true by way of the
|ntersect|on of the two events C |mp||es to both of
the peop|e where both are true and the un|on ex|st
between these events Add|ng together the
probab|||t|es of the 2 events apart from each other
then subtract the probab|||ty of the |ntersect|on unfalr 280 320 600
1oLal 303 300 1003
423
a Clven LhaL a respondenL earns less Lhan $30000 whaL ls 044SS44SS4
Lhe probablllLy LhaL he or she sald LhaL Lhe Lax code ls falr?
b Clven LhaL a respondenL earns more Lhan $30000 whaL ls 036
Lhe probablllLy LhaL he or she sald LhaL Lhe Lax code ls falr?
c ls lncome level lndependenL of aLLlLude abouL wheLher Lhe
No If the two var|ab|es were |ndependent then the
probab|||t|es above wou|d be the same
Lax code ls falr? Lxplaln
413 Lach year raLlngs are complled concernlng Lhe performance of new cars durlng Lhe flrsL 90 days of use
Suppose LhaL Lhe cars have been caLegorlzed accordlng Lo wheLher Lhe car needs warranLyrelaLed repalr (yes or no)
and Lhe counLry ln whlch Lhe company manufacLurlng Lhe car ls based (unlLed SLaLes or noL unlLed SLaLes) 8ased on
Lhe daLa collecLed Lhe probablllLy LhaL Lhe new car needs warranLy repalr ls 004 Lhe probablllLy LhaL Lhe car was manufacLured by a uSbased company ls 0
a needs a warranLy repalr?
b needs a warranLy repalr and was manufacLured by a uSbased company?
c needs a warranLy repalr or was manufacLured by a uSbased company?
d needs a warranLy repalr or was noL manufacLured by a uSbased company?
419 lf (A) 07 (8) 06 and A and 8 are lndependenL flnd (A and 8)
kepa|r No repa|r 1C1AL
US 002S 0S7S 06
nonUS 001S 038S 04
1C1AL 004 096 1
a needs a warranty repa|r? 004
b needs a warranty repa|r and was manufactured by a US 0023
based company?
c needs a warranty repa|r or was manufactured by a US 0613
based company?
d needs a warranty repa|r or was not manufactured by a 0423
USbased company?
419 lf (A) 07 and (8) 06 and lf A and
8 are sLaLlsLlcally lndependenL flnd (A and 8)
p(A and 8)
(A) (8)
07 06
A sample of 300 shoppers was selecLed ln a large meLropollLan area Lo deLermlne varlous lnformaLlon concernlng consumer behavlor 1he resulLs are summarl
Ln[oy Shopplng for cloLhlng Cender
Male lemale 1oLal
?es 136 224 360
no 104 36 140
1oLal 240 260 300
Male lemale 1oLal
?es 136 224 360
no 104 36 140
1oLal 240 260 300
a Suppose Lhe respondenL chosen ls a female WhaL ls Lhe 0138462
probablllLy LhaL she does noL en[oy shopplng for cloLhlng?
b Suppose Lhe respondenL chosen en[oys shopplng for cloLhlng 0377778
WhaL ls Lhe probablllLy LhaL Lhe lndlvldual ls a male?
c Are en[oylng shopplng for cloLhlng and Lhe gender of Lhe no lf Lhey were Lhen Lhe probablllLy of flndlng males and females who en[oy shopplng for
lndlvldual lndependenL? Lxplaln Males who en[oy shopplng 0366667
lemales who en[oy shopplng 0861338
1he proporLlons are noL Lhe same so Lhe varlables are noL lndependenL
423 Accordlng Lo an lpsos poll Lhe percepLlon of unfalrness ln Lhe uS Lax code ls spread falrly evenly across lncome
groups age groups and educaLlon levels ln an Aprll 2006 survey of 1003 adulLs lpsos reporLed LhaL almosL 60 of all
people sald Lhe code ls unfalr whereas sllghLly more Lhan 60 of Lhose maklng more Lhan $30000 vlewed Lhe code as
unfalr (eople Cry unfalrness" 1he ClnclnnaLl Lnqulrer Aprll 16 2006 p A8) Suppose LhaL Lhe followlng conLlngency
Lable represenLs Lhe speclflc breakdown of responses Less Lhan $30000 More Lha30000 1oLal lalr 223 180 403 unfalr
280 320 600 1oLal 303 300 1000 a Clven LhaL a respondenL earns less Lhan $30000 whaL ls Lhe probablllLy LhaL he or
she sald LhaL Lhe Lax code ls falr? b Clven LhaL a respondenL earns more Lhan $30000 whaL ls Lhe probablllLy LhaL he
or she sald LhaL Lhe Lax code ls falr? c ls lncome level lndependenL of aLLlLude abouL wheLher Lhe Lax code ls falr?
Lxplaln 423 A sample of 300 respondenLs was selecLed ln a large meLropollLan area Lo sLudy consumer behavlor wlLh
Lhe followlng resulLs Ln[oys Shopplng for CloLhlng Male lemale 1oLal ?es 136 224 360 no 104 36 140 1oLal 240 260
300 a Suppose Lhe respondenL chosen ls a female WhaL ls Lhe probablllLy LhaL she does noL en[oy shopplng for
uLSSL81 Male lemale 1oLal
?es 96 40 136
no 224 240 464
1oLal 320 280 600
8eef no 8eef 1oLal
uesserL 71 63 136
no uesserL 116 348 464
1oLal 187 413 600
a orders a desserL?
b orders a desserL or a beef enLree?
c ls a female and does noL order a desserL?
d ls a female or does noL order a desserL?