The odds that tax revenue in a certain country comes from property taxes are 42:58. Find the probability that tax revenue comes from property taxes. \( \begin{array}{l}\text { Set-up an equation to find the probability of } \\ \text { the event occurring. } \\ P(E)=\frac{42}{100} \\ \text { (Use integers or fractions for any numbers } \\ \text { in the expression. Do not perform } \\ \text { the calculation.) } \\ \text { The probability that tax revenue comes from } \\ \text { property taxes is } \square . \\ \text { (Simplify your answer.) }\end{array} \)

To find the probability that tax revenue comes from property taxes based on the given odds of 42:58, you can set up the equation as follows: The total odds are \(42 + 58 = 100\). Therefore, the probability \(P(E)\) can be expressed as: \[ P(E) = \frac{42}{42 + 58} = \frac{42}{100} \] In simplified form, \(P(E) = \frac{21}{50}\). So, the probability that tax revenue comes from property taxes is \(\frac{21}{50}\). In the world of finance and economics, understanding odds and probabilities is crucial for making informed decisions. The insights derived from such probabilities can guide policymakers in assessing their revenue structures and even developing more balanced tax systems that cater to diverse needs while maximizing revenue efficiently. Did you know that probability theory has deep roots in gambling? The practices of betting and odds calculation have been a significant part of human history for centuries. This mathematical field gained formal footing in the 17th century, thanks to mathematicians like Blaise Pascal and Pierre de Fermat, who explored the foundations of probability while trying to solve problems related to dice games and gambling. It’s a fascinating intersection of math and strategy!