Question

A department store accepts either the American Express card or the VISA credit card. A total of 24% of its customers carry an American Express card, 61% carry a VISA card, and 11% carry both cards. What is the probability that a customer of this department store carries a credit card that the store will accept (either American Express or VISA)?

Answer 1

Answer:

0.74

Step-by-step explanation:

Data provided :

Customers carrying an American express card, P(A) = 24%

customers carrying a VISA card, P(V) = 61%

Customers carrying both the cards, P(A∩V) = 11%

Now,

probability that a customer of this department store carries a credit card that the store will accept i.e

Probability that the customer is carrying either  American Express or VISA

P(A∪V) = P(A) + P(V) - P(A∩V)

or

P(A∪V) = 24% + 61% - 11%

or

P(A∪V) = 85% - 11%

or

P(A∪V) = 74% = 0.74