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A title company wants more information about mortgages based on the type of home being bought. 1000 mortgages are randomly selected. The sample results in
A title company wants more information about mortgages based on the type of home being bought. 1000 mortgages are randomly selected. The sample results in the table below shows the number of mortgages funded based on the type of home purchased. Answer the following questions. Include your answers in fraction and in decimal forms and round your decimal answers to 4 digits.
Single-Family | Condo | Multifamily | Total | |
Adjustable | 400 | 200 | 100 | 700 |
Fixed | 110 | 90 | 100 | 300 |
Total | 510 | 290 | 200 | 1000 |
- What is the probability that the mortgage is Adjustable AND for a Single Family?
- What is the probability that the type of home purchased is a Condo?
- What is the probability that the mortgage is Fixed OR a Single-Family home is purchased?
- Given that a Condo is purchased, what is the probability the mortgage is Adjustable?
- Given that the mortgage is Adjustable, what is the probability that a Condo is purchased?
- Determine if type of mortgage and home purchased are independent. Justify your answer by showing your work here. (HINT: Use the Multiplication Rule or conditional probabilities from above)
- Determine if purchasing a Single-Family home and a Condo are mutually exclusive events. Justify your answer using probabilities.
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