Table 4.1 show the SUV prices in Pakistani Automobile market, find the following: Table 4.1 Tax Rate Increase Tax Rate Decrease Total SUV Price Increase 30 60 90 SUV Price Decrease 55 30 85 Total 85 90 175 a) To what probability a SUV prices will increase when there is a decrease in tax rates? b) To what probability tax rate will increase when there is a decrease in SUV price? c) What is the probability that tax rate decreases and SUV price increases?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Question No. 4:
Table 4.1 show the SUV prices in Pakistani Automobile market, find the following:
Table 4.1
Tax Rate Increase Tax Rate Decrease Total
SUV Price Increase 30 60 90
SUV Price Decrease 55 30 85
Total 85 90 175
a) To what probability a SUV prices will increase when there is a decrease in tax rates?
b) To what probability tax rate will increase when there is a decrease in SUV price?
c) What is the probability that tax rate decreases and SUV price increases?
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