Chapter 4.2, Problem 20E

Junior Achievement USA and the Allstate Foundation surveyed teenagers aged 14 to 18 and asked at what age they think that they will become financially independent (USA Today, April 30, 2012). The responses of 944 teenagers who answered this survey question are as follows.

Age  Financially Independent	Number of Responses
16 to 20	191
21 to 24	467
25 to 27	244
28 or older	42

Consider the experiment of randomly selecting a teenager from the population of teenagers aged 14 to 18.

1. a. Compute the probability of being financially independent for each of the four age categories.
2. b. What is the probability of being financially independent before the age of 25?
3. c. What is the probability of being financially independent after the age of 24?
4. d. Do the probabilities suggest that the teenagers may be somewhat unrealistic in their expectations about when they will become financially independent?