In conducting a market potential study for a manufacturer of portable generators

Question

In conducting a market potential study for a manufacturer of portable generators, Miller Research Services of Minneapolis asked 829 owners of fifth-wheel and conventional travel trailers the following two questions: (1) Do you own or plan to buy a generator for your trailer? (2) What was the approximate cost of your trailer? The answers to the questions are summarized in the table

One of the travel-trailer owners who does not currently own a generator is to be selected at random for further questioning. What is the probability that the person:

(a) will own a travel trailer worth $12,000 - $17,999?

(b) will own a travel trailer worth more than $17,999?

(c) will own a travel trailer worth $12,000 - $17,999 and be planning to buy a generator?

(d) will own a travel trailer worth $12,000 - $17,999 or be planning to buy a generator?

Cost of Trailer Own a Generator Do not own, but plan to buy generator Do not own and do not plan to buy a generator Less than $6,000 1 5 14 $6,000 - $11,999 52 65 160 $12,000 - $17,999 73 78 175 $18,000 - $23,999 29 36 62 $24,000 - $29,999 21 18 21 $30,000 or more 3 10 6

Explanation / Answer

This peron is expected to have the characteristics

a) Probability = (78+175)/650=0.3892

b) Probability = (36+62+18+21+10+6)/650=0.2353

c)Probability = 78/[650]=0.12

d) Probability = [78+175+5+65+36+18+10]/650=0.5953

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