5 In the annual reader survey of HomeOffice Computing it was

5. In the annual reader survey of Home-Office Computing, it was found that 68 percent of the

respondents run a home-based business, 6 percent run a business that is not home-based, 9

percent plan to start a business, and 17 percent work at home part of the week. A reader is

selected at random. What is the probability that he or she runs a business that is home-based?

Solution

This can be calculated using simple probability.

P(Home based business) = 68% = 0.68 = 68/100 = 17/25 (It is mentioned in the question that it was found that 68 percent of the respondents run a home-based business. So randomly selecting a person leads to a 68% chance that he or she runs a business that is home-based.)