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uysha [10]
3 years ago
13

The owner of an appliance store is interested in the relationship between the price at which an item is sold (regular or sale pr

ice) and the customer's decision on whether to purchase and extended warranty. After analyzing her records, she produced the following joint probabilities:
Purchased Did not purchase extended warranty extended warranty Regular Price Sale Price 0.24 0.14 0.56 0.0599999999999999

A. What is the probability that a customer who bought an item at the regular price purchased the extended warranty?

B. What is the probability that a customer buys an extended warranty?
Mathematics
1 answer:
blagie [28]3 years ago
4 0

Answer:

A. P(R ∩ W)= 0.24

B. P(W)= 0.38

Step-by-step explanation:

Hello!

                Purchased (W)                         Did not purchase  (NW)

<u>               extendend warranty                extendend warranty            </u>

Regular            0.24                                            0.56

<u>Price (R)                                                                                                     </u>

Sale                  0.14                                    0.0599999999999999

<u>Price (S)                                                                 ≅ 0.06                               </u>

<u />

The owner whats to know if there is a relationship between the price of a sod item ( regular; sale) and the decision of buying an extended warranty. The contingency table above shows the results of the probabilities she produced after analyzing her records.

A. What id the probability that a customer who bought an item at the regular price (R) purchased the extended warranty (W)?

The asked probability is an intersection between "regular price" and "purchased the warranty", symbolically:

P(R ∩ W)= 0.24

The probability is in the table.

B. What is the probability that a customer buys an extended warranty?

To calculate the probability you have to take into account all possible outcomes that include purchasing an extended warranty, in this case, is "regular price + extended warranty" and "sales price + warranty" it is the total of the firs column:

P(W) = 0.24 + 0.14= 0.38

I hope it helps!

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