Problem

The probability that a randomly selected individual in a country earns more than $\$ 75,000$ per year is $9.5 \%$. The probability that a randomly selected individual in the country earns more than $\$ 75,000$ per year, given that the individual has earned a bachelor's degree, is $21.5 \%$. Are the events "earn more than $\$ 75,000$ per year" and "earned a bachelor's degree" independent? Are these events independent? Yes No

Solution

Step 1 :Define the events: Event A is 'earn more than $75,000 per year' and Event B is 'earned a bachelor's degree'.

Step 2 :Given that the probability of Event A, P(A), is 9.5% and the probability of Event A given Event B, P(A|B), is 21.5%.

Step 3 :Two events are independent if the probability of one event occurring does not affect the probability of the other event occurring. This is mathematically expressed as P(A|B) = P(A).

Step 4 :Compare P(A) and P(A|B). Since 9.5% is not equal to 21.5%, P(A) ≠ P(A|B).

Step 5 :Since P(A) ≠ P(A|B), the events A and B are not independent.

Step 6 :\(\boxed{\text{No, the events 'earn more than $75,000 per year' and 'earned a bachelor's degree' are not independent.}}\)

From Solvely APP
Source: https://solvelyapp.com/problems/18312/

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