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
E)None of the above

Question

Quizplus · Accepted Answer

The probability of a customer not using the pick-up service is 40% (100% - 60%). The probability of a customer not using the account service is also 40%. The probability of a customer not using either service is 40% x 40% = 16%.

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