Use Bayes' Theorem to Find the Indicated Probability

question 44

Multiple Choice

Use Bayes' theorem to find the indicated probability.
-In one town, 4% of 18-29 year olds own a home, as do 25% of 30-50 year olds and 52% of those over 50. According to a recent census taken in the town, 26.2% of adults in the town are 18-29 years old, 36.0% are 30-50
Years old, and 37.8% are over 50. If an adult is selected at random from the town and found to be a
Home-owner, what is the probability that they are aged between 30 and 50?

• A) 0.09
• B) 0.36
• C) 0.25
• D) 0.303

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Definitions:

Initial Margin

The minimum amount of equity that must be provided by an investor as part of the terms of a futures contract or other marginable securities.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future.

Total Value

The comprehensive worth of an asset or company, considering all sources of value including tangible and intangible factors.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined future date and price, commonly used for commodities or financial instruments.