Question
1. An airline offers discounted advance purchase fares to customers who buy tickets more than 30 days in advance. The same airline offers regular fares
1. An airline offers discounted "advance purchase" fares to customers who buy tickets more than 30 days in advance. The same airline offers "regular" fares to customers who buy tickets within 30 days of travel. The company notices that 60% of its customers use the "advance purchase" tickets.
The no-show rate among the "advance purchase" tickets is 5%, but the no-show rate among "regular" tickets is 30%.
Draw a tree diagram representing this situation. Hint: the first set of branches is type of fare.
2. What percent of all ticket holders are no shows? (Round to the nearest hundredth)
3. What is the probability that a customer who didn't show had an advance purchase ticket? (Round to the nearest hundredth)
4. Is being a no-show independent of the type of ticket a passenger holds? Explain your answer.
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