# Question

The following relative frequency distribution describes the household incomes for families living in a suburban community:

Income Relative Frequency

Less than $20,000........ 0.10

$20,000–under $40,000..... 0.20

$40,000–under $60,000..... 0.30

$60,000–under $80,000..... 0.25

$80,000 or more........ 0.15

a. For a randomly selected household, what is the probability that its annual income is less than $80,000?

b. If a household is known to have an income of at least $20,000, what is the probability that its annual income is in the $60,000–under $80,000 category?

c. Two households are randomly selected from those whose income is at least $40,000 per year. What is the probability that both of these households are in the $80,000 or more category?

Income Relative Frequency

Less than $20,000........ 0.10

$20,000–under $40,000..... 0.20

$40,000–under $60,000..... 0.30

$60,000–under $80,000..... 0.25

$80,000 or more........ 0.15

a. For a randomly selected household, what is the probability that its annual income is less than $80,000?

b. If a household is known to have an income of at least $20,000, what is the probability that its annual income is in the $60,000–under $80,000 category?

c. Two households are randomly selected from those whose income is at least $40,000 per year. What is the probability that both of these households are in the $80,000 or more category?

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