Question 1 (1 point) An article appears in a newspaper stating that 40% of homeo

Question

Question 1 (1 point) An article appears in a newspaper stating that 40% of homeowners in a certain community have mortgages that are "underwater". In that same community 19% of the homeowners are unemployed or underemployed. Lastly 3% of the homeowners find themselves in both situations: homeowners with underwater mortgages and also unemployed or underemployed If a homeowner is chosen at random from this population what is the probability that this person is unemployed/under employed or with an underwater mortgage? Write your answer as the exact decimal if the number is less than or equal to the ten- thousandths place, or round to the ten-thousandths place if the decimal is longer.

Explanation / Answer

Let

A = with an underwater mortgage

B = Unempoyed/under emplyed

Given:
P(A) = 0.40

P(B) = 0.19

P(A and B) = 0.03

To find P(A OR B):

By Addition Theorem:
P(A OR B) = P(A) + P(B) - P(A and B)

               = 0.40 + 0.19 - 0.03 = 0.56

So,

Answer is:

0.56

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