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(Ross, Problem 3.44) Twelve percent of all U.S. households are in California. A total of 1.3% of all U.S. households earn more than $250,000 per year, while a total of 3.3% of all California households earn more than $250,000 per year. (a) What proportion of all non-California households earn more than $250,000 per year

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TomShelby

Answer:

proportion of non-California household earning above 250,000: 1.03%

Explanation:

being Californian's household: 0.12

and from their 0.033 earn above 250,000

that leaves:

0.12 x 0.033 = 0.00396‬ proportion to household in california which earn above 250,000 per year agsins the entire household population in the country.

Now, 0.013 are the total household above 250,000

we subtract Californian's rich household and get the households for the country:

0.013 - 0.00396 = 0.00904‬

now we divide this by the .88 household that don't live in california:

0.00904/0.88 = 0.010272727272

The proportion will be of 1.03%

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