Back to 3.2 Problems on Conditional Probability

3.2 Exercise 10

Avg difficulty 2.5

Data on incomes and salary ranges for a certain population are analyzed as follows. S1=S_{1} = event annual income is less than $25,000; S2=S_{2} = event annual income is between $25,000 and $100,000; S3=S_{3} = event annual income is greater than $100,000. E1=E_{1} = event did not complete college education; E2=E_{2} = event of completion of bachelor's degree; E3=E_{3} = event of completion of graduate or professional degree program. Data may be tabulated as follows: P(E1)=0.65,P(E2)=0.30P \left(E_{1}\right) = 0 . 65 , P \left(E_{2}\right) = 0 . 30, and P(E3)=0.05P \left(E_{3}\right) = 0 . 05.

P ( S i | E j ) P \left(\right. S_{i} \left|\right. E_{j} \left.\right)

S1 S2 S3
E1 0.85 0.10 0.05
E2 0.10 0.80 0.10
E3 0.05 0.50 0.45
P ( S i ) P \left(S_{i}\right) 0.50 0.40 0.10
  1. Determine P(E3S3)P \left(E_{3} S_{3}\right).
  2. Suppose a person has a university education (no graduate study). What is the (conditional) probability that he or she will make $25,000 or more?
  3. Find the total probability that a person's income category is at least as high as his or her educational level.

Pfeiffer, Applied Probability, 3.2 Problems on Conditional Probability, exercise 10

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Adapted from Applied Probability © 2009 Paul E. Pfeiffer. Licensed under CC BY 3.0. Source: Applied Probability. Imported at revision d7a0420.