Consider the following to answer the question(s) below:
The option to buy extended warranties is commonplace with most electronics purchases. Does the type of purchase affect a consumer's willingness to pay extra for an extended warranty? Data for 420 consumers who purchased digital cameras and laptop computers from a leading electronics retailer are summarized in the table.
-The probability that a consumer purchases an extended warranty given that he/she has purchased a digital camera is
A) 0.07.
B) 0.42.
C) 0.58.
D) 0.17.
E) 0.83.

Question

Consider the following to answer the question(s) below:
The option to buy extended warranties is commonplace with most electronics purchases. Does the type of purchase affect a consumer's willingness to pay extra for an extended warranty? Data for 420 consumers who purchased digital cameras and laptop computers from a leading electronics retailer are summarized in the table. 
-The probability that a consumer purchases an extended warranty given that he/she has purchased a digital camera is
A) 0.07. 
B) 0.42. 
C) 0.58. 
D) 0.17. 
E) 0.83.

Quizplus · Accepted Answer

To find the probability that a consumer purchases an extended warranty given that he/she has purchased a digital camera, we need to look at the column for digital cameras and the row for extended warranties. We see that out of the 200 consumers who purchased digital cameras, 84 of them also purchased extended warranties. So the probability of a consumer purchasing an extended warranty given that they purchased a digital camera is 84/200 = 0.42. Therefore, the correct answer is B.

Consider the Following to Answer the Question(s) Below