(a)

Scenario: Each of a sample of four home mortgages is classified as fixed rate () or variable rate ().

Problem: What are the 16 outcomes in ?

Process: ...

Answer: .

(b)

Problem: Which outcomes are in the event that exactly three of the selected mortgages are fixed rate?

Process: ...

Answer: .

(c)

Problem: Which outcomes are in the event that all four mortgages are of the same type?

Process: ...

Answer: .

(d)

Problem: Which outcomes are in the event that at most one of the four is a variable-rate mortgage?

Process: ...

Answer: .

(e)

Problem: What is the union of the events in parts (c) and (d)? What is the intersection of these two events?

Process: ...

Answer: and .

(f)

Problem: What is the union of the two events in parts (b) and (c)? What is the intersection of the two events in parts (b) and (c)?

Process: ...

Answer: and .