Two percent (2%)of the customers of a store buy cigars.Half of the customers who buy cigars buy beer.25 percent who buy beer buy cigars.Determine the probability that a customer buys beer.
A)0.25
B)0.01
C)0.04
D)0.50
E)0.005

Question

Quizplus · Accepted Answer

Let P(C) be the probability of buying cigars = 0.02. P(B|C) is the probability of buying beer given cigars = 0.5. P(C|B) is the probability of buying cigars given beer = 0.25. Using Bayes' theorem, P(B) = P(C) * P(B|C) / P(C|B) = 0.02 * 0.5 / 0.25 = 0.04.

Two Percent (2%)of the Customers of a Store Buy Cigars