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In Istanbul It Rains on 25% of Days

Question 1

Multiple Choice

In Istanbul it rains on 25% of days. A small retailer knows that on rainy days her profits are usually low (Pr(L) =0.7) but when it is not rainy she is much more likely to make good profits (Pr(L) =0.2) . On average, what are the chances that she makes a good profit on any given day (give answer as percentage, 1 decimal place) ?


A) 32.5%
B) 35.0%
C) 37.5%
D) 40.0%

Correct Answer:

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