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New Car Warranty The probability that a customer will buy
Chapter 4, Problem 31CQ(choose chapter or problem)
Problem 31CQ
New Car Warranty The probability that a customer will buy a car and an extended warranty is 0.16. If the probability that a customer will purchase a car is 0.30, find the probability that the customer will also purchase the extended warranty.
Questions & Answers
QUESTION:
Problem 31CQ
New Car Warranty The probability that a customer will buy a car and an extended warranty is 0.16. If the probability that a customer will purchase a car is 0.30, find the probability that the customer will also purchase the extended warranty.
ANSWER:
Solution:
Step 1 of 2:
Let us denote the event A = Customer to purchase a car
Therefore, P(A) = 0.30
Then B = the customer will purchase an extended warranty.
Let AB = the customer will purchase the car and warranty.
Then, P(AB) = 0.16