Question
Major Motors sells both new and used cars. Past sales records show the following customer purchasing behaviour: 60% of all sales tend to be of
Major Motors sells both new and used cars. Past sales records show the following customer purchasing behaviour: 60% of all sales tend to be of new cars, and 40% of used cars. When a new car is sold, thereis a 50% chance that the customer will purchase an extended car warranty. When a used car is sold, there is a 75% chance that the customer will purchase an extended car warranty.
A new customer is about to purchase a car from Major Motors. As the salesman, you would like to look at all possibilities in terms of the person buying a used or new car with or without the extended warranty.
Determine if the two events "buys a new car" and "purchases an extended warranty" are independent.
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