A Consumer Organization Estimates That 32% of the Households in a Particular

question 90

Multiple Choice

A consumer organization estimates that 32% of the households in a particular community have one television set,38% have two sets,and 16% have three or more sets.If two households are chosen at random,what is the probability that at least one has one ore more television sets?

• A)0.241
• B)0.986
• C)0.740
• D)0.020
• E)0.860

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Definitions:

MPS

Marginal Propensity to Save, which is the fraction of an increase in income that is not spent on an increase in consumption.

Disposable Income

Funds that households can direct towards their saving and spending ambitions after income taxes are accounted for.

Consumption

The portion of income spent on goods and services rather than saved.

Billion

A number equivalent to one thousand million (1,000,000,000) or, in some number systems, a million million (1,000,000,000,000).