Use Bayes's Rule to Find the Indicated Probability An Adult Is Picked at Random from the City

question 29

Multiple Choice

Use Bayes's rule to find the indicated probability.
-The first two columns of the table below give a percentage distribution for adults in one city by income group. The third column gives the percentage of people in each income group who plan to Buy a new car next year. $$\begin{array} { c c c } \begin{array} { l } \text { Income } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Percentage } \\\text { of population }\end{array} & \begin{array} { c } \text { Percentage that will } \\\text { buy new car next year }\end{array} \\\hline 0 - 4999 & 5.2 & 2 \\5000 - 9999 & 6.4 & 3 \\10,000 - 14,999 & 5.4 & 6 \\15,000 - 19,999 & 8.7 & 7 \\20,000 - 24,999 & 9.4 & 9 \\25,000 - 29,999 & 10.2 & 10 \\30,000 - 34,999 & 13.8 & 11 \\35,000 - 39,999 & 10.7 & 13 \\40,000 - 49,999 & 15.5 & 15 \\50,000 \text { and over } & 14.7 & 19\end{array}$$ An adult is picked at random from the city. Given that the person selected plans to buy a new car Next year, what is the probability that the person's income is between $5,000 and $9,999?

• A)0.05
• B)0.03
• C)0.01
• D)0.02

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Definitions:

Conventional Morality

A stage in moral development where individuals conform to established societal rules and norms to maintain social order and relationships.

Utilitarian View

An ethical philosophy that posits the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Position Approach

The position approach is a method in management and negotiation that focuses on the roles or standings of the parties involved, rather than the underlying interests and needs.

Leadership

The action of leading a group of people or an organization, or the ability to do this by inspiring and influencing others.