1) The option to buy extended warranties is commonplace with most electronics purchases. But does the type of purchase affect a consumer’s willingness to pay extra for an extended warranty? Data for 420 consumers who purchased digital cameras and laptop computers from a leading electronics retailer are summarized in the table. The probability that a consumer purchases a digital camera and an extended warranty is:

Purchased Warranty

	yes	no	total
Digital camera	30	42	72
Laptop computer	145	203	348
Total	175	245	420

A. .07

B. .42

C. .58

D. .17

E. .83

2) Given the same contingency table above, the probability that a consumer purchases an extended warranty given that he/she has purchased a digital camera is:

A. .07

B. .42

C. .58

D. .17

E. .83