A dry cleaning business offers a pick-up and delivery service for a 10 percent surcharge.Management believes 60 percent of the existing customers will take advantage of this service.They are also considering offering customers the option of opening an account and receiving monthly bills.They believe 60 percent of customers (regardless of whether or not they use the pick-up service)will use the account service.If the two services are introduced to the market, what is the probability a customer uses neither of these services?
A)0.16
B)0.24
C)0.80
D)0.36

Question

Quizplus · Accepted Answer

The probability of a customer using neither service is the complement of the probability of using either service. The probability of using either service is the sum of the probabilities of using each service minus the probability of using both services. The probability of using the pick-up service is 0.6, the probability of using the account service is 0.6, and the probability of using both services is 0.6 * 0.6 = 0.36. Therefore, the probability of using either service is 0.6 + 0.6 - 0.36 = 0.84. The probability of using neither service is 1 - 0.84 = 0.16.

A Dry Cleaning Business Offers a Pick-Up and Delivery Service