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A survey in which people were asked how they were planning to prepare their taxes in 2007 revealed the following: $$ \begin{array}{lc} \hline \begin{array}{l} \text { Method of } \\ \text { Preparation } \end{array} & \text { Percent } \\ \hline \text { Computer software } & 33.9 \\ \hline \text { Accountant } & 23.6 \\ \hline \text { Tax preparation service } & 17.4 \\ \hline \text { Spouse, friend, or other } & \\ \text { relative will prepare } & 10.8 \\ \hline \text { By hand } & 14.3 \\ \hline \end{array} $$ What is the probability that a randomly chosen participant in the survey a. Was planning to use an accountant or a tax preparation service to prepare his taxes? b. Was not planning to use computer software to prepare his taxes and was not planning to do his taxes by hand?

Short Answer

Expert verified
a. The probability that a randomly chosen participant was planning to use an accountant or a tax preparation service is \(0.41\) or \(41\% \). b. The probability that a randomly chosen participant was not planning to use computer software to prepare their taxes and was not planning to do their taxes by hand is \(0.518\) or \(51.8\% \).

Step by step solution

01

1. Understand the question and find the relevant data from the table

The questions are broken down into parts a and b. For part a, we want to find the probability that a randomly chosen participant in the survey was planning to use an accountant or a tax preparation service to prepare their taxes. For part b, we need to find the probability that a randomly chosen participant in the survey was not planning to use computer software to prepare their taxes and was not planning to do their taxes by hand. From the table, we have the following relevant information: - Probability of using an accountant: \(P(A)=0.236\) - Probability of using a tax preparation service: \(P(T)=0.174\) - Probability of using computer software: \(P(C)=0.339\) - Probability of preparing by hand: \(P(H)=0.143\)
02

2. Finding the probability of using an accountant or a tax preparation service

To find the probability of using an accountant or a tax preparation service, we simply add the probabilities since these are disjoint events and cannot happen at the same time: \(P(A \ or\ T) = P(A) + P(T)\) Now, we plug in the values from the table: \(P(A \ or\ T) = 0.236 + 0.174 \)
03

3. Calculate the probability for part a

Calculate the final probability for part a: \(P(A \ or \ T) = 0.236 + 0.174 = 0.41\) The probability that a randomly chosen participant was planning to use an accountant or a tax preparation service is \(0.41\) or \(41\% \).
04

4. Finding the probability of not using computer software and not preparing by hand

To find the probability of not using computer software to prepare their taxes and not preparing by hand, we will use the complementary probabilities as follows: \(P(\sim C \ and\ \sim H) = 1 - (P(C) + P(H))\)
05

5. Calculate the probability for part b

Now, plugging in the values from the table, we get: \(P(\sim C \ and\ \sim H) = 1 - (0.339 + 0.143) \) Calculating the final probability for part b: \(P(\sim C \ and\ \sim H) = 1 - (0.339 + 0.143) = 1 - 0.482 = 0.518\) The probability that a randomly chosen participant was not planning to use computer software to prepare their taxes and was not planning to do their taxes by hand is \(0.518\) or \(51.8\% \).

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Probability Theory
When we talk about Probability Theory, we are looking at a branch of mathematics that deals with the likelihood of different outcomes. Think of it as a way to quantify uncertainty. In the context of the original exercise, we use probability theory to understand how likely it is that someone from a survey will choose a certain method to prepare their taxes.

For every method of tax preparation, we are given a percentage, which represents the probability of that method being chosen by a randomly selected survey participant. These probabilities are expressed as decimals, such as 33.9% for using computer software, which can be written as 0.339 in probability notation. By understanding these basic probabilities, we can start to answer more complex questions about combinations of events, such as the probability of using either an accountant or a tax preparation service.
Statistical Data Analysis
Statistical Data Analysis involves collecting, summarizing, and interpreting data to make informed decisions or predictions. It is a key part of applied mathematics, especially in conducting surveys or experiments. In our survey example, the percentages given after data collection are a form of summarizing the responses of all survey participants.

By analyzing these percentages, we can infer about the whole population's behavior regarding tax preparation. Even if you don't know the total number of people surveyed, you can still make predictions for a randomly chosen individual, because the percentages act as a reflection of the entire group. It's important to notice how cleanly the data is presented in tabular form, making it easier to extract the needed information for probability calculations.
Disjoint Events
Disjoint events are events that cannot occur at the same time. In our exercise, using an accountant and using a tax preparation service are considered disjoint events because a person cannot use both methods simultaneously for their taxes. Hence, when calculating the probability of a randomly chosen participant using an accountant or a tax preparation service, we add the probabilities of the individual events together.

This principle of adding probabilities for disjoint events is fundamental, as it helps us understand that the occurrence of one event excludes the possibility of another. In mathematical terms, if the events A and B are disjoint, then the probability of either A or B occurring is given by the sum of their individual probabilities: \( P(A \text{ or } B) = P(A) + P(B) \). It's a straightforward rule that informs much of probability theory.

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Most popular questions from this chapter

Robin purchased shares of a machine tool company and shares of an airline company. Let \(E\) be the event that the shares of the machine tool company increase in value over the next \(6 \mathrm{mo}\), and let \(F\) be the event that the shares of the airline company increase in value over the next \(6 \mathrm{mo}\). Using the symbols \(\cup, \cap\), and \({ }^{c}\), describe the following events. a. The shares in the machine tool company do not increase in value. b. The shares in both the machine tool company and the airline company do not increase in value. c. The shares of at least one of the two companies increase in value. d. The shares of only one of the two companies increase in value.

Determine whether the statement is true or false. If it is true, explain why it is true. If it is false, give an example to show why it is false. If \(A\) is a subset of \(B\), then \(P(A) \leq P(B)\).

STAYING IN ToucH In a poll conducted in 2007, 2000 adults ages 18 yr and older were asked how frequently they are in touch with their parents by phone. The results of the poll are as follows: $$ \begin{array}{lccccc} \hline \text { Answer } & \text { Monthly } & \text { Weekly } & \text { Daily } & \text { Don't know } & \text { Less } \\ \hline \text { Respondents, \% } & 11 & 47 & 32 & 2 & 8 \\ \hline \end{array} $$ If a person who participated in the poll is selected at random, what is the probability that the person said he or she kept in touch with his or her parents a. Once a week? b. At least once a week?

A certain airport hotel operates a shuttle bus service between the hotel and the airport. The maximum capacity of a bus is 20 passengers. On alternate trips of the shuttle bus over a period of \(1 \mathrm{wk}\), the hotel manager kept a record of the number of passengers arriving at the hotel in each bus. a. What is an appropriate sample space for this experiment? b. Describe the event \(E\) that a shuttle bus carried fewer than ten passengers. c. Describe the event \(F\) that a shuttle bus arrived with a full load.

A time study was conducted by the production manager of Vista Vision to determine the length of time in minutes required by an assembly worker to complete a certain task during the assembly of its Pulsar color television sets. a. Describe a sample space corresponding to this time study. b. Describe the event \(E\) that an assembly worker took 2 min or less to complete the task. c. Describe the event \(F\) that an assembly worker took more than 2 min to complete the task.

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