QUESTION
Recently, 48% percent of new auto sales are SUVs, 16.5% are pickup trucks, and the remaining 31.5% of sales are sedans. Below is table that breaks down the share of sales in each category by income level.
Annual Income | SUV | Truck | Sedan |
Under $50,000 | 31% | 37% | 39% |
$50,000 to $74,999 | 19% | 20% | 18% |
$75,000 to $99,000 | 10% | 10% | 9% |
$100,000 and up | 40% | 33% | 34% |
Suppose we know that an individual who purchased a vehicle earns more than $100,000 per year. Use Bayes' Theorem to find the probability that the buyer purchased truck.
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