event that gas is pre-purchased event that a GPS is rented with P(A) = 0.20 and P(B) = 0.65. hypothetical 1,000 table with columns correspondin A Not A Tot

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A rental car company offers two options when a car is rented. A renter can choose to pre-purchase gas or not and can also choose to rent a GPS device or not. Suppose that the events
event that gas is pre-purchased
event that a GPS is rented
are independent with P(A) = 0.20 and P(B) = 0.65.
(a) Construct a hypothetical 1,000 table with columns corresponding to whether or not gas is pre-purchased and rows corresponding to whether or not a GPS is rented.
B
A
B=
Not B
Total
A
(b) Use the table to find P(A U B).
Not A
Total
1,000
Give a long-run relative frequency interpretation of this probability.
In the long run,
% of car renters will pre-purchase gas or rent a GPS, or both.
Transcribed Image Text:A rental car company offers two options when a car is rented. A renter can choose to pre-purchase gas or not and can also choose to rent a GPS device or not. Suppose that the events event that gas is pre-purchased event that a GPS is rented are independent with P(A) = 0.20 and P(B) = 0.65. (a) Construct a hypothetical 1,000 table with columns corresponding to whether or not gas is pre-purchased and rows corresponding to whether or not a GPS is rented. B A B= Not B Total A (b) Use the table to find P(A U B). Not A Total 1,000 Give a long-run relative frequency interpretation of this probability. In the long run, % of car renters will pre-purchase gas or rent a GPS, or both.
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