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 big screen TVs 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 big screen TV and an extended
warranty?
c. What is the probability that a consumer purchases an extended warranty given that
he/she has purchased a big screen TV?

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 big screen TVs 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 big screen TV and an extended
warranty?
c. What is the probability that a consumer purchases an extended warranty given that
he/she has purchased a big screen TV?

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 big screen TVs 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 big screen TV and an extended
warranty?
c. What is the probability that a consumer purchases an extended warranty given that
he/she has purchased a big screen TV?

The Option to Buy Extended Warranties Is Commonplace with Most