Question

In Rockport, Vermont, a town of 5,000 adults, the town council is interested in making a policy change to restructure the property tax base and needs to make an informed decision based on demographic trends. Of all the adults, 2000 live in private homes while the remaining live in apartment buildings. Of those living in private homes, 240 are upper income, 1200 are middle income and the remainnder are lower income. Of those living in apartment buildings, 900 are upper income, 1,500 are lower income and the rest are middle income. Set up a cross-classification table for type of dwelling unit and income status to find the following probabilities chosen at random:

1. What is the probability that the person is middle income?

	a.	1.02
	b.	0.66
	c.	0.83
	d.	0.36

2. What is the probability that the person lives in an apartment building?

	a.	1.03
	b.	0.90
	c.	1.20
	d.	0.60

3. What is the probability that the person lives in a private home and is upper income?

	a.	0.66
	b.	0.35
	c.	0.71
	d.	0.048

4. What is the probability that the person lives in an apartment building or is lower income?

	a.	0.712
	b.	0.87
	c.	0.40
	d.	0.536

5. What is the probability that the person is middle income, if it is known that he lives in an apartment building?

	a.	0.20
	b.	0.10
	c.	0.97
	d.	0.30

Answer 1