Answer:
(a) 0.76
(b) 0.46
(c) 0.58
Step-by-step explanation:
Let's first list the probabilities of each event:
Buyers using online search engine: 0.65
Buyers skipping test drive = 0.11
Buyers that use search engines AND skip test drives = 0.65 * 0.11 = 0.07
(a) To find this probability, we simply need to add the probabilities of the above conditions that meet the criteria of the question. Since all of the above conditions meet the criteria set by the question, we have:
Probability = 0.65 + 0.11
Probability = 0.76
(b) The probability of buyers that do not use search engines = 1 - 0.65 = 0.35
Probability of buyers that do not use search engines OR do skip the test drive = 0.35 + 0.11 = 0.46
(c) Probability of buyers buyers that do not skip test drive = 1 - 0.11 = 0.89
Probability of buyers using online search engine AND not skipping the test drive = 0.65 * 0.89 = 0.58
(It must be noted that question c is phrased wrong. Since both events are independent, i.e buying a car OR skipping the test drive would mean 0.65 + 0.89 = 1.54 (not possible) )
Answer:
there's no question
Step-by-step explanation:
....
Answer:
the rate compounded semi-annually is compounded twice in a year. thus, this rate is higher than the rate compounded annually which is compounded once in a year
Step-by-step explanation:
The formula for calculating future value:
FV = P (1 + r/m)^mn
FV = Future value
P = Present value
R = interest rate
N = number of years
m = number of compounding
For example, there are two banks
Bank A offers 10% rate with semi-annual compounding
Bank B offers 10% rate with annual compounding.
If you deposit $100, the amount you would have after 2 years in each bank is
A = 100x (1 + 0.1/2)^4 = 121.55
B = 100 x (1 + 0.1)^2 = 121
The interest in bank a is 0.55 higher than that in bank B
It’s four because you subtract 2 minus negative 2
