Of all the transactions at a company 89 are over 80 Of the t

Of all the transactions at a company 89% are over $80. Of the transactions that are over $80, 37% are taxable . While among those transactions that are $80 or less, 40% are taxable . Given that a randomly selected transaction is taxable, what is the probability that the transaction is over $80?

Solution

P( Taxable) = 0.3733                          
P( Over 80 & Taxable) = 0.3293                          
P( Over 80 given that Taxable) = P( Over 80 & Taxable)/P( Taxable)= 0.3293/0.3733 = 0.8821