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Question 1 - Basic Probability
The following table shows the number of times a sample of 500 parents have given their adult children financial assistance to buy a car and to pay the rent.
Pay the rent
Yes
No
Buy A car
110
220
80
90
a. Develop a joint probability table.
b. Using the marginal probabilities for 'buy a car' and 'pay the rent', are parents more likely to assist their adult children with buying a car or paying the rent? What is your interpretation of the marginal probabilities?
c. If parents provided financial assistance to buy a car, what is the probability that the parents assisted with paying rent.
d. If parents did not provide financial assistance to buy a car, what is the probability that the parents assisted with paying rent.
e. What is the probability that parents provided financial assistance for their adult children by either helping to buy a car or pay rent?
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