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The Probability That a Person Owns a Sports Car Given

question 10

Short Answer

The probability that a person owns a sports car given that they subscribe to at least one automotive magazine is 40%. We also know that 3% of the adult population subscribes to at least one automotive magazine. Finally, the probability of a person owning a sports car given that they don't subscribe to at least one automotive magazine is 30%. Use this information together with Bayes theorem to compute the probability that a person subscribes to at least one automotive magazine given that they own a sports car.


Definitions:

Depreciable Cost

The cost of a fixed asset minus its salvage value, representing the total amount that can be depreciated over its useful life.

Constant Percentage

A fixed rate applied uniformly across a set of variables or values, often used in finance and mathematics.

Salvage Value

The estimated resale value of an asset at the end of its useful life, often considered for depreciation calculations.

Depreciation

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life to reflect its decrease in value due to wear and tear, age, or obsolescence.

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