Question

The table below contains information on family financial planning according to the age of the

head of Household for all households in the nation.

	Younger than 30 years	Between 30 and 50 years.	Older than 50 years
Financial planning	40	440	100
No financial planning	160	240	20

1. What percent of people older than 50 years have a Financial Plan?

2. If a household is randomly chosen, what is the probability the head of that household is

“between 30 and 50 years of age” and has “No Financial Planning”?

3. If a household is randomly chosen, what is the probability the head of that household is

“Between 30 and 50 years of age” if we know the person doesn’t have a financial plan?

4. Are the events “Financial Planning” and “Younger than 30 years” mutually exclusive? Answer

Yes or No and explain.

5. Are the events “No Financial Planning” and “Older than 50 years” independent? Answer Yes or No and give sufficient numerical justification to back up your answer.

6.Turn the above table into a tree diagram using Age of Head of Household as your first stage. Write probabilities along each of the branches.

Answer 1

	<30	30-50	>50	Total
Financial	40	440	100	580
No Financial	160	240	20	420
Total	200	680	120	1000

1.

= 100/120

= 0.8333

2.

=240/1000

= 0.24

3.

=240/ 420

= 0.5714

4.

No

Because there 40 cases who have both and not exclusive event

5.

P(No Financial Planning) = 420/1000 =  0.4200

P(Older than 50 years) = 120/1000 = .12

P(A).P(B) = .42*.12 = 0.0504

P(A and B) = 20/1000 = 0.02

Hence P(A).P(B) and P(A and B) are not equal and not indpendent

Thanks in advance!

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