Consider the following to answer the question(s) below:
Harrison Water Sports has three retail outlets: Vancouver, Victoria, and Nanaimo. The Vancouver store does 50 percent of the total sales in a year, while the Victoria store does 35 percent of the total sales, and Nanaimo the remainder. Further analysis indicates that of the sales in Vancouver, 20 percent are in boat accessories. The percentage of boat accessories at the Victoria store is 30 and the percentage at the Nanaimo store is 25.
-Overall, the probability that a sale by Harrison Water Sports will be for a boat accessory is
A) 0.2425.
B) 0.105.
C) 0.10.
D) 0.375.
E) 0.30.

Question

Quizplus · Accepted Answer

To find the overall probability that a sale by Harrison Water Sports will be for a boat accessory, we need to calculate the weighted average of the percentage of sales from each of the three stores that come from boat accessories.

For the Vancouver store: 
50% of total sales x 20% of those sales are for boat accessories = 10% of total sales

For the Victoria store:
35% of total sales x 30% of those sales are for boat accessories = 10.5% of total sales

For the Nanaimo store:
15% of total sales x 25% of those sales are for boat accessories = 3.75% of total sales

Adding up these percentages gives us a total of: 
10% + 10.5% + 3.75% = 24.25%

Therefore, the overall probability that a sale by Harrison Water Sports will be for a boat accessory is 0.2425, or choice A.

Consider the Following to Answer the Question(s) Below