New Car Warranty The probability that a customer will buy

Chapter 4, Problem 31CQ

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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.

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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


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