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# Probability: Credit Card

Credit card companies have aggressively solicited new accounts from students who are new homeowners. Suppose that a sample of 150 new homeowners indicated the following information as to whether they possessed a Visa Card or an American Express Card.

American Express Card
Yes | No | Total
Yes 60 | 40 | 100
Visa Card No 20 | 30 | 50
Total 80 | 70 | 150

If a student is selected at random, what is the probability that
a. The new homeowner has a Visa credit card?
b. The new homeowner has an American Express card?
c. The new homeowner has a Visa credit card and an American Express Card?
d. The new homeowner has neither a Visa credit card nor an American Express Card?
e. The new homeowner has a Visa credit card or an American Express Card?

#### Solution Summary

The solution provides step by step method for the calculation of probabilities and conditional probabilities. Formula for the calculation and Interpretations of the results are also included.

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