Question

The checking accounts of USF Credit Union are categorized by age of account and balance in account. We are going to select an account at random from this group of 2000 accounts.What is the conditional probability that the account has a balance at least $500, given that it is at least 3 years old, that is P(>=$500 | >=3 years)?
a. 1/2
b. 1/10
c. 1/4
d. None of these

Answer 1

Missing details to question is attached

Answer:

c) $\frac{1}{4}$

Step-by-step explanation:

S

Required:

Find the probability that the account has a balance at least $500, given that it is at least 3 years old.

Which means: P(≥$500 | ≥3 years)

To find the probability, use the formula below:

P(≥$500 | ≥3 years) = (No. of accounts with balance≥ 500 and age ≥3 years) / (No. of accounts with age≥3 years)

Where from th given information:

Number of accounts with balance≥ 500 and age ≥3 years = 200

Number of accounts with age≥3 years = 600 + 200 = 800

Therefore,

P(≥$500 | ≥3 years) $= \frac{200}{800} = \frac{1}{4}$

The probability that the account has a balance at least $500, given that it is at least 3 years old = $\frac{1}{4}$