many real estate professionals are pushing hard for present

many real estate professionals are pushing hard for present- value accounting, whereby investment properties can be valued at their current market value instead of their historical cost and, therefore, provide greater annual depreciation write-off. Accountants are generally mixed in their opinion on this subject. In a survey of 15 accountants, 10 favored sanctioning present value accounting procedures, 6 favored a shortening of the . allowable depreciation period, and 3 recommended no change in accounting law relating to asset depreciation. suppose one of the accountants involved in the survey is selected at random

a- What is the probablity that she favors present-value accounting ?

b-  What is the probablity that she favors either present-value accounting procedure or a shortening of the allowable asset depreciation period ?

c- What is the probablity that she favors both present-value accounting procedure and a shortening of the allowable asset depreciation period  ?

please I want the full answer if you don\'t mind .

Solution

Total = 15
Sactioning = 10
Shortening = 6
Neither = 3

Let only sanctioning = a
Only shortning = b
Both = c
Neither = d

a + c = 10
b + c = 6
d = 3
a + b + c + d = 15

So, a + b + c = 12
b + 10 = 12
b = 2

a + 6 = 12
a = 6

c = 10 - a
c = 10 - 6
c = 4

Answer a : 10/15 = 2/3
Answer b : (a+b+c)/15 = 12/15 = 4/5
Answer c : c/15 = 4/15

So, answers are 2/3 , 4/5 and 4/15