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Question

An eag Ae trrueltea uublee Dla Nall Sha cora durrstlyto thc polke. Sha # wcaring # blct uool sncalz-. The {ornnc Kicututncoven chat cotton fbyet (rom (tcbexk nodl,uralcr. Shustly Atcrapnke Mr X comat t tha atention of the policr - Hc i Wraring uhitc Culion Tahat rtnicnrd comment Tha lorntc gicatitt farmebtcs thc felluwing Iua 4alInrcl FIuiticnn Hp: Mr Xhad irtene phyuical contact with Miss" Ha Mc Xduxt have inese physical cuniact wuh Miss " Some otrr,utrown phytica contxt with Mits XT

An eag Ae trrueltea uublee Dla Nall Sha cora durrstlyto thc polke. Sha # wcaring # blct uool sncalz-. The {ornnc Kicututncoven chat cotton fbyet (rom (tcbexk nodl,uralcr. Shustly Atcrapnke Mr X comat t tha atention of the policr - Hc i Wraring uhitc Culion Tahat rtnicnrd comment Tha lorntc gicatitt farmebtcs thc felluwing Iua 4alInrcl FIuiticnn Hp: Mr Xhad irtene phyuical contact with Miss" Ha Mc Xduxt have inese physical cuniact wuh Miss " Some otrr,utrown phytica contxt with Mits XT-thit leamnn tc lutra ncuvcrcu from Miat uratre irxlistinguishuhlc (nuun Ikr Ghtrt &t Mr X Thit The mrich probability f thls chec cutton 10,05. AeuituerEaL putubility & thc trmfcr, Frrittent uml 10cdm 4 reult 0f intcnie phrkd 0M. Fuulal trmalct; mruateledut ctuttn denltrhhtt result of Inkcnt rhytkal Qnml), Frobsbility 64n6 Froup Glut- Hunsr woolawcalcr DooI olabilty 6aling 0 Furrrt 5( Ahct aod 5pslbility Halnennet alnenm cunskyIrd (ux tha ILA, 0(e [p,94" 1d,94" OOl Ijue Id,o= 4hat fa tha |Lelilxa rati foe tz: cbecrecy triaka with rau OA stlvnly kwri propenltion 08 0c OE: 40



Answers

According to the Ameriprise Financial Money Across Generations study, 9 out of 10 par-
ents with adult children ages 20 to 35 have helped their adult children with some type of
financial assistance ranging from college, a car, rent, credit-card debt, and/or down
payments for houses (Money, January 2009 ). The following table, with sample data con-
sistent with the study, shows the number of times parents have given their adult children
financial assistance to buy a car and to pay rent.
$\begin{array}{l}{\text { a. Develop a joint probability table and use it to answer the remaining questions. }} \\ {\text { b. Using the marginal probabilities for buy a car and pay rent, are parents more likely to }} \\ {\text { assist their adult children with buying a car or paying rent? What is your interpreta- }} \\ {\text { tion of the marginal probabilities? }}\end{array}$
$\begin{array}{l}{\text { c. If parents provided financial assistance to buy a car, what it the probability that the }} \\ {\text { parents assisted with paying rent? }} \\ {\text { d. If parents did not provide financial assistance to buy a car, what is the probability that }} \\ {\text { the parents assisted with paving rent? }}\end{array}$
$\begin{array}{l}{\text { e. Is financial assistance to buy a car independent of financial assistance to pay rent? Use }} \\ {\text { probabilities to justify your answer. }} \\ {\text { What is the probability that parents provided financial assistance for their adult chil- }} \\ {\text { dren by either helping buy a car or pay rent? }}\end{array}$


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