Question

Ownership of small businesses. According to the Journal of Business Venturing (Vol. 17, 2002), 27% of all small businesses owned by non-Hispanic whites nationwide are women-owned firms. If we select, at random, a small business owned by a non-Hispanic white, what is the probability that it is a male-owned firm?

Short answer

The probability is 0.73.

Step-by-step solution

Important formula

The formula for the compliment $\mathbf{P}\mathbf{(}{\mathbf{A}}^C\mathbf{)}\mathbf{=}\mathbf{1}\mathbf{-}\mathbf{P}\mathbf{(}\mathbf{A}\mathbf{)}$.

The possible probability

$\begin{array}{c}\mathrm{P}\left({\mathrm{A}}^{\mathrm{C}}\right)=1-\mathrm{P}\left(\mathrm{A}\right)\\ =1-0.27\\ =0.73\end{array}$

Therefore the probability is 0.73.