A car dealer has established that 40% of his potential customers prefer single cab cars while 60% prefer double cab cars. From a recent survey among his existing clients, he obtained additional information which indicates that 15% of clients who bought single cab cars prefer air conditioning while 65% of clients who bought double cars prefer air conditioning. Required: a) What is the probability that a client who bought a single cab does not prefer air conditioning? (5) b) What is the probability that a client prefers a double cab with air conditioning?
A car dealer has established that 40% of his potential customers prefer single cab cars while 60% prefer double cab cars. From a recent survey among his existing clients, he obtained additional information which indicates that 15% of clients who bought single cab cars prefer air conditioning while 65% of clients who bought double cars prefer air conditioning. Required: a) What is the probability that a client who bought a single cab does not prefer air conditioning? (5) b) What is the probability that a client prefers a double cab with air conditioning?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
1 A car dealer has established that 40% of his potential customers prefer single cab cars while
60% prefer double cab cars. From a recent survey among his existing clients, he obtained
additional information which indicates that 15% of clients who bought single cab cars prefer
air conditioning while 65% of clients who bought double cars prefer air conditioning.
Required:
a) What is the probability that a client who bought a single cab does not prefer air
conditioning? (5)
b) What is the probability that a client prefers a double cab with air conditioning?
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