SOLUTION: The probability that house sales will increase in the next 6 months is estimated to be 0.25 the probability that the interest rates on the housing loans will go up is estimated to

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Question 327199: The probability that house sales will increase in the next 6 months is estimated to be 0.25 the probability that the interest rates on the housing loans will go up is estimated to 0.7 the probability that house sales and interest rates will go up in the next 6 months is estimated to be 0.20 the probably that house sales or interest rates will increase during in the 6 months is
a) 0.75 b)0.85 c) 0.705 d)0.90
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
The probability that house sales will increase in the next 6 months is estimated to be 0.25
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the probability that the interest rates on the housing loans will go up is estimated to be 0.7
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the probability that house sales and interest rates will go up in the next 6 months is estimated to be 0.20
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the probability that house sales or interest rates will increase during in the 6 months is
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P(hsup OR irup) = P(hsup) + P(irup) - P(hsup AND irup)
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= 0.25 + 0.70 - 0.20
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= 0.75
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Cheers,
Stan H.
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a) 0.75 b)0.85 c) 0.705 d)0.90