Given the Contingency Table Shown Here, Find P(A or B) $\quad$

question 49

Multiple Choice

Given the contingency table shown here, find P(A or B) . $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Age }$
$\begin{array} {| l | c | c | c| } \hline\text { Absences } & \text { Under } 25 ( A ) & 25 \text { or More } \left( A ^ { \prime } \right) & \text { Row Total } \\\hline \text { Under } 2 \text { days } ( B ) & 50 & 40 & 90 \\\hline 2 \text { or more days } \left( B ^ { \prime } \right) & 30 & 80 & 110 \\\hline \text { Column Total } & 80 & 120 & 200\\\hline\end{array}$

• A).25
• B).85
• C).60
• D).42

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Definitions:

Marginal Propensity

The proportion of an additional increment of income that is spent on consumption. It reflects the change in consumption resulting from a change in income.

Multiplier

A factor by which an initial change in spending will alter total economic output by more than the initial monetary amount.

Marginal Propensity

A measure of how much an individual's consumption changes when their income changes.

Spending Multiplier

A concept in economics that refers to the ratio of a change in output to the initial change in spending that brought it about, indicating the ripple effect of spending through the economy.