Answer to Question #151382 in Statistics and Probability for Prisilla Jati

Question

Given that a customer owed $1000 or more, what is the probability that the customer received a cash advance? (2 Marks)
Are the events “receiving a cash advance” and “owning $1000 or more” mutually exclusive? Explain using probabilities. (2 Marks)
Are the events “receiving a cash advance” and “owning $1000 or more” independent? Explain using probabilities.

Answer 1

a)P(Receiving a cash advance given the customer owed $ 1000 or more) = P(receiving cash in advance and owing $1000 or more) divided by P(owing $ 1000 or more)

b)The events “receiving a cash advance” and “owning $1000 or more” are not mutually exclusive because each event can occur while other occurs. The sum of their probabilities is not one.

P(“receiving a cash advance” and “owning $1000 or more”)$\not =$ 0

c)The events “receiving a cash advance” and “owning $1000 or more” are independent.

P(“receiving a cash advance” and “owning $1000 or more” )=P(“receiving a cash advance” )*P( “owning $1000 or more” )