P(A|B)<span>P(A intersect B) = 0.2 = P( B intersect A)
</span>A) P(A intersect B) = <span>P(A|B)*P(B)
Replacing the known vallues:
0.2=</span><span>P(A|B)*0.5
Solving for </span><span>P(A|B):
0.2/0.5=</span><span>P(A|B)*0.5/0.5
0.4=</span><span>P(A|B)
</span><span>P(A|B)=0.4
</span>
B) P(B intersect A) = P(B|A)*P(A)
Replacing the known vallues:
0.2=P(B|A)*0.6
Solving for P(B|A):
0.2/0.6=P(B|A)*0.6/0.6
2/6=P(B|A)
1/3=P(B|A)
P(B|A)=1/3
The most he can buy for each cupcake is 1.25
