A study of 200 stamping firms revealed these incomes after taxes:
Income After Taxes Number of Firms
Under $1 million 102 -
$1 million up to $20 million 61
$20 million and more 37
What is the probability that a particular firm selected has $1 million or more in income after taxes?
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A. B. C. D. E.B
There are 200 firms altogether. 98 firms have more than a million in income. So 98/200 = 0.49
To calculate the probability that a particular firm selected has $1 million or more in income after taxes, we need to consider the number of firms with income after taxes of $1 million or more and divide it by the total number of firms in the sample.
According to the information given, there are 61 firms with incomes between $1 million and $20 million and 37 firms with incomes of $20 million and more.
To find the probability, we need to determine the total number of firms in the sample. From the information provided, it is stated that the study includes 200 stamping firms.
Therefore, the total number of firms in the sample is 200.
Now, we can calculate the probability by adding the number of firms with incomes of $1 million or more (61 firms) and the number of firms with incomes of $20 million and more (37 firms), and then dividing it by the total number of firms (200 firms).
Probability = (Number of Firms with Incomes of $1 million or more + Number of Firms with Incomes of $20 million and more) / Total Number of Firms
Probability = (61 + 37) / 200
Probability = 98 / 200
Probability = 0.49
Therefore, the probability that a particular firm selected has $1 million or more in income after taxes is 0.49.
The correct answer is B. 0.49.