SOLUTION: In a certain year, the probability that a person in the United States would declare personal bankruptcy was 0.004. The probability that a person in the United States would declare

Question 1196442: In a certain year, the probability that a person in the United States would declare personal bankruptcy was 0.004. The probability that a person in the United States would declare personal bankruptcy and had recently experienced a "big three" event (loss of job, medical problem, or divorce or separation) was 0.002. What was the probability that a person had recently experienced one of the "big three" events, given that she had declared personal bankruptcy? (Round your answer to four decimal places.)
Answer by ikleyn(52835) (Show Source): You can put this solution on YOUR website!
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In a certain year, the probability that a person in the United States would declare personal bankruptcy was 0.004.
The probability that a person in the United States would declare personal bankruptcy and had recently
experienced a "big three" event (loss of job, medical problem, or divorce or separation) was 0.002.
What was the probability that a person had recently experienced one of the "big three" events,
given that she had declared personal bankruptcy? (Round your answer to four decimal places.)
~~~~~~~~~~~~~~~~~~~~~~

Let A be an event that a person in the United States would declare personal bankruptcy.


Let B be an event that that a person in the United States had recently experienced a "big three" event 
(loss of job, medical problem, or divorce or separation).


The problem wants you find a CONDITIONAL PROBABILITY of the event P(A and B) given A.


This probability is  the ratio

    P(A and B)/P(A) =  =  = 0.5 = 50%.    ANSWER

Solved and thoroughly explained.

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