Compute Conditional Probabilities
-The Manager of a Used Car Lot $\frac { 11 } { 20 }$

question 158

Multiple Choice

Compute Conditional Probabilities
-The manager of a used car lot took inventory of the automobiles on his lot and constructed the following table based on the age of his car and its make (foreign or domestic) . A car was randomly selected from the lot. Given that the car selected was a domestic car, what is the probability that it was older than 2 years?

• A) \(\frac { 11 } { 20 }\)
• B) \(\frac { 15 } { 29 }\)
• C) \(\frac { 9 } { 40 }\)
• D) \(\frac { 87 } { 200 }\)

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Definitions:

Dependent Variable

The outcome variable in a study, experiment, or statistical model, whose variation depends on factors represented by independent variables.

Multicollinearity

A statistical phenomenon in which multiple independent variables in a regression model are highly linearly related, affecting the model’s accuracy.

Multicollinearity

A statistical phenomenon in which several independent variables in a regression model are highly correlated, potentially distorting the results of regression analysis.

Regression Coefficients

Parameters in a regression model that represent the change in the dependent variable expected for a one-unit change in the predictor variable, holding all else constant.