The owner of an appliance store is interested in the relationship between the price at which an
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The owner of an appliance store is interested in the relationship between the price at which an item is sold (regular or sale price) and the customer's decision on whether to purchase an extended warranty.
After analyzing her records, she produced the following joint probabilities.
Purchased Did Not Purchase Extended Warranty Extended Warranty Regular price .21 .57 Sale price .14 .08
a. What is the probability that a customer who bought an item at the regular price purchased the extended warranty?
b. What proportion of customers buy an extended warranty?
c. Are the events independent? Explain.
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Related Book For
Statistics For Management And Economics
ISBN: 9781133420774
9th Edition
Authors: Gerald Keller, Kenneth C Louden
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