The owner of an appliance store is interested in the relationship between the price at which an item is sold (regular or sale price) and the customer's decision on whether to purchase and extended warranty.After analyzing her records, she produced the following joint probabilities:Regular PriceSale Pricecustomer buys an extended warranty?Did not purchaseextended warranty extended warranty0.230.13A. What is the probability that customer who bought an item at the regular price purchased the extended warranty?Probability =B. What is the probability thatProbability =Purchased0.510.13

Given that the following joint probabilitiesPurchased extended warranty Did not purchase extended…

Answered: The owner of an appliance store is…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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You purchase a brand new car for $15,000 and insure it. The policy pays 78% of the car's value if there is an issue with the engine or 30% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.009, and the probability there is an issue with the speaker system is 0.02. The premium for the policy is p. Let X be the insurance company's net gain from this policy. (a) Create a probability distribution for X, using p to represent the premium on the policy. Enter the possible values of X in ascending order from left to right. P(X) (b) Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent
A door-to-door salesman expects to make a sale 21% of the time when starting the day. But making a sale increases his enthusiasm so much that the probability of a sale to the next customer is 0.32. If he makes no sale, the probability for a sale to the next customer stays at 0.21. What is the probability that he will make at least two sales with his first three visits?
(a) The probabilities that a customer will purchase a new car from Green, white, red or blue color are respectively 0.11, 0.14, 0.22 and 0.25. Find the probability that the new customer will not purchase car from these colors.
Virtually any process can be improved by use of statistics, including the law. A much publicized case that involved a debate about probability was the Collins case, which began in 1964. An incident of purse snatching in the Los Angeles area led to the arrest of Michael and Janet Collins. At their trial, an "expert" presented the probabilities listed in table below on characteristics possessed by a couple seen running from the crime scene: Characteristics Probability Man with beard 1/10 Blond woman 1/4 1/10 Yellow car Woman with ponytail Man with moustache Interracial couple 1/10 1/3 1/1000 The chance that a couple had all these characteristics together is 1 in 12 million. Because the Collinses had these characteristics, the Collinses must be guilty. Do yo see any problem with this line of reasoning? Hint: The question of interest is not "what is the probability of finding a couple with these characteristics?" because one such couple has been found (the Collinses), the question is "what…
A large chain retail store has "scratcher" cards that customers can scratch and win a discount at the register if the customer uses the store's credit card. The following is a table with the discount that a customer can scratch off and the corresponding probability of that discount being awarded. Note: the discount percentage IS NOT related to the probability. Do not use the discount percentage to calculate any of the probabilities below. Discount Probability 10% off 0.50 15% off 0.25 20% off 0.15 30% off 0.10 1. What is the probability a customer gets at least a 20% discount? 2. What is the probability that two customers in a row get a 10% discount? 3. What is the probability that three consecutive customers get all get 15% discounts? 4. What is the probability that none of the first four customers gets over a 20% discount? 5. What is the probability that the first person to get a 30% discount is the fifth person in line? 6. You the 7th person in line and notice that the 5 people…
There is a 0.9985 probability that a randomly selected 30-year-old male lives through the year. A life insurance company charges $191 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $120,000 as a death benefit. Complete parts (a) through (c) below.
The probability that a 80-year-old female in the U.S. will die within one year is about 0.048711. An insurance company is preparing to sell a 80-year-old female a one-year, $20,000 life insurance policy. How much should it charge for its premium in order to have a positive expectation for the policy? (Round your answer to the nearest dollar.)$
A door-to-door salesman expects to make a sale 14% of the time when starting the day. But making a sale increases his enthusiasm so much that the probability of a sale to the next customer is 0.39. If he makes no sale, the probability for a sale to the next customer stays at 0.14. What is the probability that he will make at least two sales with his first three visits?

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