Stats: Data and Models (3rd Edition)

Published by Pearson
ISBN 10: 0321692551
ISBN 13: 978-0-32169-255-9

Chapter 15 - Probability Rules! - Exercises - Page 377: 14



Work Step by Step

By the definition of conditional probability: $P(B|A)=\frac{P(A\cap B)}{P(A)}$. Hence here: $P(\text{more than 100\$ and faulty})=P(\text{faulty})\cdot P(\text{more than 100\$|faulty})=20\%\cdot40\%=0.2\cdot0.4=0.08=8\%$
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