Harrison Water Sports has three retail outlets: Seattle, Portland, and Phoenix. The Seattle store does 50 percent of the total sales in a year, while the Portland store does 35 percent of the total sales. Further analysis indicates that of the sales in Seattle, 20 percent are in boat accessories. The percentage of boat accessories at the Portland store is 30 and the percentage at the Phoenix store is 25. Overall, the probability that a sale by Harrison Water Sports will be for a boat accessory is:
A) 0.105
B) 0.2425
C) 0.75
D) None of the above

Question

Quizplus · Accepted Answer

The overall probability is calculated by summing the weighted probabilities of each store's sales in boat accessories: (0.5 * 0.2) + (0.35 * 0.3) + (0.15 * 0.25) = 0.1 + 0.105 + 0.0375 = 0.2425.

Harrison Water Sports Has Three Retail Outlets: Seattle, Portland, and Phoenix