Chapter 6.3C 1. In 2000, the International Revenue Service received 129,075,000 individual tax returns. Of these, 10,855,000 reported an adjusted gross income of at least $100,000, and 240,000 reported at least $1 million. If you know that a randomly chosen return shows an income of $100,000 or more, what is the conditional probability that the income is at least $1 million? P(at least $100,000|at least $100,000) = 0.0019/0.0841 = 0.0226 ******There is a type on your homework here. It should say over $100,000, not over 1 million. 2. A shipment contains 10,000 switches. Of these, 1000 are bad. An inspector draws switches at random, so that each switch has the same chance to be drawn. (a) Draw one switch. What is the probability that the switch you draw is bad? What is the probability that it is not bad? P(Bad) = 1000/10000 = .1, P(not bad) = 0.9. (b) Suppose that the first switch drawn is bad. How many switches remain? How many of them are bad? Draw a second switch at random. What is the conditional probability that this switch is bad? 9,999 switches remain, 999 are bad. P(second is bad|first is bad) = 999/9,999 = 0.099991 (comment: Knowing the result of the first trial changes the conditional probability for the second trial, so the trials are not independent. But because the shipment is large, the probabilities change very little. The trials are almost independent.) 3. Here are the counts (in thousands) of earned degrees in the United States in the 2005-2006 academic year, classified by level and by the sex of the degree recipient: Bachelor’s Master’s Professional Doctorate Total Female 784 276 39 20 1119 Male 559 197 44 25 825 Total 1343 473 83 45 1944 (a) If you choose a degree recipient at random, what is the probability that the person you choose is a woman?P(Female) = 1119/1944 = .576 (b) What is the conditional probability that you choose a woman, given that the person chosen received a professional degree? P(Female | professional degree) = 39/83 = 0.4699 (c) Are the events “choose a woman” and “choose a professional degree recipient” independent? How do you know? No. If the events A = choose a woman and B = Professional degree are independent, then P(Female) = P(Female|Professional). We know from the previous problems that P(female)=.576 and P(Professional degree) = .4699, so not independent. (d) What is the probability that a randomly chosen degree is a man? P(Male) = 1343/1944 = 0.4244 (e) What is the probability that the person being chosen received a bachelor’s degree, given that he is a man? P(bachelor’s | Male) = 559/825 = .6776 (f) Use the multiplication rule to find the joint probability of choosing a male bachelor’s degree recipient. Check your result by finding this probability directly from the table of counts. P(Male)*P(Bachelors|Male) = (0.4244)(.6776) = 0.2876. If we look at the table, there are 559/1944 = .2876, so yes, they do agree.