
Gregg O. answered 06/30/15
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Let A be the event that Sue will buy a new car.
Let B be the event that Sue lives in campus.
We are trying to solve for P(A|B), the conditional probability that Sue will buy a new car, given that she lives on campus.
This is computed as
P(A|B) = P(AB)/P(B).
P(A|B) = P(AB)/P(B).
Now, we can substitute in known values.
P(AB) is the probability that Sue will buy a new car AND live on campus. This is 0.34.
P(B) is the probability that Sue lives on campus. This is 0.53.
P(A|B) = P(AB)/P(B)
= 0.34/0.53.