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.
a. What is the probability that a consumer purchases an extended warranty?
b. What is the probability that a consumer purchases a digital camera and an extended
warranty?
c. What is the probability that a consumer purchases an extended warranty given that
he / she has purchased a digital camera?

Question

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.  
a. What is the probability that a consumer purchases an extended warranty?
b. What is the probability that a consumer purchases a digital camera and an extended
warranty?
c. What is the probability that a consumer purchases an extended warranty given that
he / she has purchased a digital camera?

Quizplus · Accepted Answer

The Answer of 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.  
a. What is the probability that a consumer purchases an extended warranty?
b. What is the probability that a consumer purchases a digital camera and an extended
warranty?
c. What is the probability that a consumer purchases an extended warranty given that
he / she has purchased a digital camera?

The Option to Buy Extended Warranties Is Commonplace with Most